Bitcoin Price Shows Tepid Reaction to US Inflation Slowdown

In May, the US Consumer Price Index rose by 0.1%, compared to 0.2% in April. On an annual basis, without seasonal adjustment, the CPI increased to 2.4%.

The primary driver of inflation was real estate, with the housing price index rising by 0.3% for the month (3.9% for the year). Food prices showed a similar increase. Energy and gasoline costs fell by 1% and 2.6%, respectively, in May.

The data released by the US Bureau of Labor Statistics (BLS) came in below analysts’ expectations. Experts had forecasted a CPI of 2.5%.

? Just In: May US CPI annual inflation rises 2.4%, in line with expectations of 2.5%.

Core CPI inflation increased 2.8% Y/Y, below forecasts for a gain of 2.9%. pic.twitter.com/kHqz1J5nXS

— Jesse Cohen (@JesseCohenInv) June 11, 2025

Core CPI for May also fell short of consensus forecasts—2.8% actual versus 2.9% expected.

Swap and options markets are almost entirely confident that the Fed will maintain the key rate range of 4.25-4.5% following the meeting on June 18. The probability of this scenario is estimated at 99.8%.

It is traditionally believed that increased liquidity availability positively affects the prices of risk assets like Bitcoin and other digital currencies.

The cryptocurrency market as a whole showed little reaction to the BLS data. Bitcoin prices briefly exceeded $110,000, while Ethereum’s price rose above $2800.

According to CoinGecko, all top-10 digital assets by market capitalization ended the day in the “green zone.” Only TRON saw a 1% decline in the last hour.

The stock market reacted with even less significant growth. By the time of writing, the Nasdaq Composite index had risen by 0.27%, the S&P 500 by 0.28%, and the Dow Jones indicator added 0.18%.

Earlier, BitMEX co-founder Arthur Hayes suggested that a softening of the Fed’s policy could lead to Bitcoin rising to $150,000 by the end of the year.