U.S. June CPI cools more than expected; Bitcoin price jumps in response

July 15 news: After the U.S. released its June consumer price index (CPI) data last night, which came in below market expectations, Bitcoin’s price rose sharply.

Before the data was released, Bitcoin’s price had been hovering below $63,000. After the release, it surged nearly $1,000 immediately, once reaching a high of $63,500.

The data shows that the U.S. June CPI fell 0.4% month-over-month, ending the prior streak of continuous increases. Although most experts expected CPI to decline somewhat due to the Middle East ceasefire agreement, the actual drop was 3.5%, lower than the 3.8% forecast.

Further analysis finds that the decline in June CPI was mainly driven by the U.S.-Iran ceasefire agreement, which pushed oil prices down. Meanwhile, core CPI excluding volatile items such as energy and food remained unchanged.

Notably, the U.S.-Iran ceasefire agreement ended last week, and regional tensions have escalated again, sending oil prices back up. This could signal that July’s CPI data may rebound.

At present, Bitcoin traders are closely watching this economic indicator, believing it could influence the decision-making at this month’s upcoming Federal Open Market Committee (FOMC) meeting. The Federal Reserve could even choose to raise interest rates at this meeting.

Analysts point out that if the CPI year-over-year inflation rate is above 4%, it may trigger further tightening of monetary policy, which would be bearish for Bitcoin. But the actual figure of 3.5% could have the opposite effect.

Benefiting from the positive CPI data, the BTC price at one point climbed to a high of $65,100. Analysts believe that as subsequent news is gradually digested by the market, the FOMC meeting later this month is expected to exert an even greater impact on market volatility.

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