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Bitcoin Taps $110,000 Following Cooler-Than-Expected US Inflation Data – New High Coming?

by admin June 12, 2025

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Earlier today, Bitcoin (BTC) briefly climbed above the $110,000 mark after the release of cooler-than-expected US Consumer Price Index (CPI) data. The softer inflation reading strengthens the case for the US Federal Reserve (Fed) to begin cutting interest rates – a development that could benefit risk-on assets like BTC.

Bitcoin Gains As US Inflation Softens

Today, the US Bureau of Labor Statistics released the May 2025 CPI report, showing signs that inflation is continuing to ease. Both the headline and core CPI readings came in below economists’ forecasts.

Specifically, the headline CPI rose by just 0.1% in May, compared to the 0.2% consensus estimate. On a year-over-year (YoY) basis, the headline CPI registered at 2.4%, slightly below the expected 2.5%, and up from 2.3% in April.

Core CPI – which excludes volatile components like food and energy – also rose by 0.1% in May, versus the forecasted 0.3%. The April figure was 0.2%. On a YoY basis, core CPI came in at 2.8%, marginally lower than the 2.9% consensus.

Following the inflation report, BTC saw modest gains, climbing 0.6% to briefly touch the $110,000 level before retracing slightly. The data has increased the likelihood of a Fed rate cut in the near future.

According to data from the Chicago Mercantile Exchange (CME) FedWatch Tool, traders are currently pricing in two rate cuts in 2025, with the first expected in September and the second in December.

BTC also stands to benefit from easing geopolitical tensions. US President Donald Trump stated today that a trade deal with China “is done,” further boosting investor sentiment.

Meanwhile, crypto analyst Titan of Crypto highlighted a bullish golden cross forming on Bitcoin’s weekly chart. In a post on X, the analyst shared the following chart and emphasized the importance of BTC holding above the $109,000 level to confirm a potential breakout.

Source: Titan of Crypto on X

A golden cross is a bullish technical pattern that occurs when a short-term moving average (MA) – typically the 50-day – crosses above a long-term MA like the 200-day. This crossover signals a potential shift in momentum and is often seen as an indicator of a sustained upward trend.

Macroeconomic Conditions Favor A BTC Rally

Beyond easing inflation, several macroeconomic indicators support a bullish outlook for BTC. Historically, Bitcoin tends to track M2 money supply, and a rise in global liquidity could contribute to further price appreciation.

Some analysts are also drawing parallels between Bitcoin and gold. Crypto commentator Ted Pillows recently predicted that BTC could reach $130,000 by Q3 2025, mirroring gold’s performance in inflationary cycles.

Importantly, the current Bitcoin market shows no signs of overheating. Unlike past bull runs, the current cycle lacks signs of retail-driven mania, suggesting there may still be significant upside potential. At press time, BTC trades at $109,876, up 1% in the past 24 hours.

BTC trades at $109,876 on the daily chart | Source: BTCUSDT on TradingView.com

Featured Image from Unsplash.com, charts from X and TradingView.com

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June 12, 2025 0 comments

NFT Gaming

Bitcoin Climbs Slightly as US Reports Inflation Slowed in May

by admin June 11, 2025

In brief

Bitcoin has rallied in recent days after dipping in late May.
The Fed was widely expected to keep interest rates unchanged.
Altcoins have largely followed Bitcoin’s price pattern recently, although ETH has outpaced BTC.

Bitcoin gained half a percentage point after the May Consumer Price Index showed that prices rose 2.4% in May, showing that U.S. President Donald Trump’s trade war has had a limited impact on prices.

It’s worth noting that a 2.4% increase is lower than all 73 forecasters predicted in the latest Bloomberg survey.

The largest cryptocurrency by market capitalization was recently hovering just below $109,000, but has now risen closer to $110,000. BTC has gained 4.4% in the past seven days, amid renewed hopes for a settling of tariff tensions and as the list of companies plotting corporate Bitcoin treasuries has continued to grow.

Major altcoins performed similarly with Ethereum, the second largest crypto by value, and Solana has risen 1.7% in the past hour after having gained 7.3% in the past week. SOL is currently changing hands for $167.09, according to CoinGecko data.

“Crypto has so much momentum right now due to macro demand for Bitcoin and regulatory clarity for DeFi that the rally can probably continue whether the Fed cuts or not,” Zach Pandl, head of research at Grayscale, told Decrypt in an email. The lower-than-expected reading could make it more likely that the Federal Reserve considers a rate cut.

“Fed rate cuts should be considered negative for the value of the dollar and positive for assets that compete with the dollar,” he added, “including other foreign currencies, physical gold, and Bitcoin.”

The CPI, a widely watched price measure, shows that prices climbed 0.2% compared to April, coming in lower than most economists’ forecasts, sending the annual rate to 2.4%, still in excess of the U.S. central bank’s 2% target. Core pricing, which strips away more volatile food and energy costs, rose by only 0.1% compared to from the previous month, sending that annual rate to 2.8%.

The latest ratings come after April inflation measures arrived cooler than expected, with the Personal Consumer Expenditures rising just 0.1%, buoying investors looking for a rate reduction.

The Federal Reserve has said it will base any cut on data-based evidence that inflation is waning sustainably.

Rate cuts are largely considered beneficial for digital assets. After cutting the rate to a range between 4.25% and 4.50%, the Fed has left rates intact at its last three meetings, much to Trump’s ire.

The CME FedWatch tool calculated a 99% probability that the central bank would leave the current rate unchanged. It is unlikely to slash rates at its July meeting, but there is a more than 50% likelihood of a cut in September.

In an email Tuesday, Ruslan Lienkha, chief of markets, at Switzerland-based crypto services firm YouHodler wrote that “financial markets remain optimistic.”

“There is a strong possibility that Bitcoin could soon reach a new all-time high, as the price currently stands just a few percentage points below its previous peak,” Lienkha noted.

But he added warily that “the risk of a reversal remains, particularly if upcoming economic data disappoints. All eyes are now on tomorrow’s U.S. inflation report. While markets are pricing in a moderate uptick, a higher-than-expected reading could trigger increased volatility across risk assets, including cryptocurrencies.”

Edited by Stacy Elliott.

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June 11, 2025 0 comments

NFT Gaming

Major Cryptocurrencies Struggle as Hang Seng Cheers U.S.-China Trade Talks; U.S. Inflation Eyed as China Deflation Worsens

by admin June 9, 2025

Major cryptocurrencies showed little bullish momentum Monday, even as hopes for the U.S.-China trade talks lifted Asian stocks.

Bitcoin

, the leading cryptocurrency by market value, traded flat-to-negative near $105,650, having carved out a doji candle, a sign of indecision, on Sunday, according to data source TradingView.

Data from Blockchain.com showed a marked slowdown in network activity, with the seven-day moving average of daily on-chain transactions falling to 315.48K, the lowest in at least a year.

Payments-focused cryptocurrency XRP

struggled to gather upside traction despite topping a bearish trendline from the mid-May highs. The cryptocurrency changed hands at $2.24 at press time, down over 1% on the day (UTC). Volatility may increase this week as the XRP Ledger’s APEX 2025 conference kicks off in Singapore.

Meme cryptocurrency dogecoin

traded nearly 2% lower, closing in on 18 cents, having failed to establish a foothold above the 100-day simple moving average (SMA) over the weekend.

Hang Seng tops 24K

Hong Kong’s Hang Seng index rose 1.3%, topping the 24,000 mark for the first time since March 24, according to data source TradingView. The move came in response to the optimism about the U.S.-China trade talks this week.

“Optimism is as high as it’s been since Trump’s election as top trade deputies will meet in London starting on Monday. There are indications that talks will go all week and Trump himself is optimistic,” ForexLive’s Chief Currency Analyst Adam Button said in a blog post.

“The meeting should go very well,” President Donald Trump said on Truth Social Friday, announcing the new round of trade talks in London.

Other Asian indices, such as South Korea’s KOSPI and China’s Shanghai Composite, also gained ground despite the deepening consumer and factory gate deflation in China.

China’s deflation worsens

China’s consumer prices fell 0.1% year-over-year in May, according to data from the National Bureau of Statistics released on Monday. The CPI first turned negative in February.

Meanwhile, the producer price index, or factory gate prices, fell 3.3% year-over-year in May, registering a sharper decline than the 3.2% drop analysts had expected. Factory gate prices have been in deflation since October 2022.

According to Robin Brooks, senior fellow in the Global Economy and Development program at the Brookings Institution, the U.S. tariffs are generating a deflationary shock for major exporters like China.

“China’s producer price inflation for consumer goods is down to its lowest level since the 2008 crisis. U.S. tariffs will now push China into full-on deflation. All necessary conditions for deflation are there: weak consumption and a debt overhang. U.S. tariffs are now the catalyst…,” Brooks said on X.

The worsening deflation could prompt China to stimulate domestic demand with further liquidity easing.

China’s central bank in May cut the key interest rates by 10 basis points to a historic low while reducing the reserve requirement ratio, releasing liquidity into the market. Last week, the state-run China Securities Journal reported that the People’s Bank of China may lower the reserve requirement ratio further later this year to support growth and restart government bond trading.

More Chinese stimulus could bode well for financial markets, including cryptocurrencies.

Focus on U.S. CPI

The U.S. consumer price index for May due Wednesday will be scrutinized by markets for clues that Trump’s tariffs are adding to price pressures in the economy.

The headline CPI is seen matching April’s pace of 0.2% month-on-month growth, equating to an annualized 2.5% rise versus April’s 2.3% increase, according to FXStreet. Meanwhile, the core inflation, which excludes the volatile food and energy component, is forecast to have ticked higher to 2.9% in May from 2.8% in April.

Economists at Barclays expect the data to show first signs of tariffs-related price increases across wide range of core goods.

A hotter-than-expected print could dent Fed rate cuts, potentially injecting downside volatility in financial markets.

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June 9, 2025 0 comments