Inflation Slows as Bitcoin Surpasses $59,000

In June, annual inflation in the United States slowed from 3.3% to 3%, falling short of the consensus forecast of 3.1%.

On a monthly basis, the consumer price index decreased by 0.1%, contrary to expectations of a 0.1% increase and zero change in May.

The index excluding food and energy prices rose by 0.1% compared to the previous month and by 3.3% compared to June of the previous year, marking the lowest level since April 2021. In May, the figures were 0.2% and 3.4%, respectively.

Analysts had anticipated a slowdown in annual rates to 3.4% and monthly rates to 0.2%.

Prices for services excluding housing and energy fell by 0.05% after a 0.04% decline the previous month. The Fed noted the importance of this metric in analyzing the inflation trajectory.

An important indicator for monetary authorities, rental rates increased by 0.3% — the lowest growth since August 2021.

Along with data on the rapid cooling of the labor market, the June CPI should bolster the Fed’s confidence that it is time to ease policy. Two more reports on consumer price dynamics and employment are due before the September meeting, and we expect them to elicit a similar reaction. According to our forecasts, the Fed will start cutting rates on September 17-18,” commented Anna Wong of Bloomberg Economics.

Traders increased the likelihood of such a scenario to approximately 86.2% from 73.4% the day before.

Macroeconomic data spurred a rise in Bitcoin, whose value increased by 1.5% in the first three minutes. Ethereum rose by 1.6% over the same period. At the time of writing, the price of the leading cryptocurrency exceeded $59,000, while the second reached $3,000.

The surge in quotes triggered sales, leading to the loss of gains for digital gold and the stabilization of Ethereum’s rise.

Earlier, 10x Research suggested a drop in Bitcoin to $50,000 due to a sharp change in sentiment.

Meanwhile, technical analyst Peter Brandt did not rule out a decline in digital gold prices to $44,000.

Standard Chartered maintained expectations for the leading cryptocurrency’s return to its ATH in August and subsequent growth to $100,000 by the U.S. presidential elections in November.