US CPI May Ease to 33 in May as Bitcoin Price Surges to 69K

Key Points
– The latest US CPI report for May shows a steady inflation rate of 0.3%, easing concerns about rising prices.
– Core CPI also dropped to 0.2% monthly and 3.4% yearly, signaling positive market sentiment.
– Bitcoin price surged from $66,800 to $69,400, a 3.8% increase following the US CPI report.

In the recent Consumer Price Index (CPI) report released by the US government, inflation in the country remained stable at 0.3% in May. This consistent rate provides some relief to financial markets that have been anxious about inflationary pressures.

The CPI, which tracks the prices of goods and services nationwide, showed no change from the previous month but saw a 3.3% increase compared to the same period last year.

US CPI Steady at 3.3%
Data from the Labor Department’s Bureau of Labor Statistics revealed that the US Consumer Price Index (CPI) held steady at 0.3% in May, surprising market expectations of a decrease to 0.1% for the month. Despite this unexpected stability, the year-over-year CPI inflation slightly cooled from 3.4% in the previous month to 3.3% in May.

US CPI on the Decline!
Core CPI at 0.2% m/m, 0% y/y, 3.2%
Bullish!!!!

Furthermore, the Core CPI, which excludes volatile food and energy prices, saw a drop to 0.2% in May from 0.3% in the previous month. Yearly Core CPI also showed a decline in inflation, falling to 3.4% from 3.6% in April. These decreases point towards a cooling inflation trend, which has brought bullish sentiment into the market.

Market Reaction
Following the release of the CPI report, the cryptocurrency market saw a surge in bullish activity, particularly with Bitcoin witnessing a significant price increase. Bitcoin’s value rose from $66,800 to nearly $69,400, marking a 3.8% jump in a short period.

Moreover, Bitcoin’s trading volume reached $27.8 billion, while its market capitalization rose to $1.36 trillion.

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Crypto news