The CPI inflation in the United States comes in hot at 2.7%, accelerating for the second month and the highest level since February. This effectively eliminates any chance of a Fed rate cut in July, with analysts speculating whether Fed Chair Jerome Powell to also pause in September amid tariff jitters.
The U.S. Bureau of Labor Statistics released the June CPI inflation data on July 14. As per the report, the headline CPI inflation comes in at 2.7%, higher than the 2.6% forecast and 2.4% in May. Inflation has now accelerated for two consecutive months. Moreover, the annual core CPI came in at 2.9%, lower than the expected 3%.
The month-over-month CPI inflation rate increased by 0.3%, higher than the 0.1% rise last month. Moreover, the core CPI monthly comes in at 0.2%, lower than the 0.3% forecast but higher than the 0.1% rise in May.
At the time of writing, the CME FedWatch Tool showed a 59.1% probability of a 25 bps rate cut by the Federal Reserve in September. Moreover, a 43.6% probability of another 25 bps rate cut in December.
The US dollar index (DXY) showed volatility and moved around 98, making it difficult for traders to adjust accordingly. The 10-year Treasury yield was around 4.417% after the key CPI inflation print.
Bitcoin price holds above $117K after the CPI data release, indicating strength in the market. The price slipped earlier due to a selloff by the Satoshi-era whale. The 24-hour low and high were $116,373 and $122,085, respectively.
CoinGlass data also showed buying the dip sentiment in the derivatives market. At the time of writing, the total BTC futures open interest was up 1% to $86.70 billion in the last 4 hours. This indicates positive sentiment among traders.
Popular analyst Ali Martinez said “When Bitcoin dips ahead of CPI or PPI reports, it often rallies right after the data drops — and vice versa.”
Also Read: Crypto Market Eyes US CPI as September Fed Rate Cut in Doubt
