The US inflation rate, indicated by the Consumer Price Index (CPI), decreased to 3.0% YoY in June compared to 4.0% in May, as reported by the Bureau of Labor Statistics.
While BTC Did Not Move Much, the US Treasury Yield Dropped
The US inflation rate, indicated by the Consumer Price Index (CPI), decreased to 3.0% YoY in June compared to 4.0% in May, as reported by the Bureau of Labor Statistics.
This beat expectations, which predicted a drop to 3.1%. Following the CPI announcement, Bitcoin (BTC) price movements remained muted, increasing to $30,900 before dropping back to just below $30,260.
In contrast to expectations for 5.0%, the core CPI — which excludes prices for food and energy — dropped from 5.3% to 4.8%.
The headline inflation rate in June, which was 3%, is down from its peak of 9.1% in 2022. More significantly, after consistently exceeding 5% this year, the core inflation rate changed to 4.8%, dropping to its lowest level since October 2021. With a 91.1% probability indicated by the CME's FedWatch tool, markets and the Federal Reserve still anticipate another rate hike during the Federal Open Market Committee (FOMC) meeting later this month.
While BTC did not move much, the US 10-year Treasury yield dropped 6 basis points to 3.91% and the 2-year yield dropped 14 basis points to 4.73%. The dollar index has decreased by 0.5%, and stock index futures rose 0.8% the previous trading day.
