Key Points
- The U.S. CPI numbers for May remained unchanged, leading to a surge in crypto markets.
- Bitcoin (BTC) and Ethereum (ETH) experienced significant growth, along with other top 10 digital assets.
The crypto market experienced a boost on June 12, following the release of the U.S. Consumer Price Index (CPI) data for May.
The CPI data remained the same as the previous month, contrasting with a 0.3% increase in April.
Impact on Crypto Market
In addition, the year-over-year CPI dropped from 3.4% to 3.3%, surpassing predictions that it would remain the same.
The core CPI YoY levels also decreased from 3.6% to 3.4%, the lowest rate since April 2021.
This was below the general consensus of a 3.5% point for the index.
Following the release of this data, the total crypto market cap increased by 3%, reaching $2.65 trillion, according to CoinGecko.
Bitcoin (BTC) broke a two-day losing streak with a 4% increase, jumping above $69,300.
At the same time, Ethereum (ETH) grew by nearly 3% to $3,639.
Other top 10 digital assets, including BNB, Solana (SOL), XRP, Dogecoin (DOGE), and Toncoin (TON) also saw modest gains on the day.
Future Predictions
A report from QCP Capital suggested that crypto traders and investors were expecting a decrease in inflation data from the upcoming Federal Open Market Committee (FOMC) meeting.
The firm observed “aggressive buying” of June 13 calls and increased funding rates, indicating a market positioning for an upward move.
According to QCP Capital analysts, a neutral FOMC outcome could push the crypto market to retest its highs.
If the Fed’s decisions align with those of other apex banks, cryptocurrencies and risk assets could see an influx of liquidity.
Recently, the European Central Bank and the Bank of Canada cut rates.
Following this news, the U.S. dollar index (DXY) reached a 30-day high, indicating an increase in available capital for investments.
