Lower inflation could benefit digital asset prices, which have been struggling recently.
The U.S. Consumer Price Index (CPI) remained unchanged in May, beating economists' forecasts of a 0.1% increase and down from 0.3% in April. Year-over-year, the CPI rose 3.3%, slightly below the 3.4% forecast and April's figure. The core CPI, excluding food and energy costs, increased by 0.2% in May, better than the expected 0.3% rise and matching April's 0.3%. Annually, the core CPI rose 3.4%, below the anticipated 3.5% and April's 3.6%.
Bitcoin (BTC) rose to $69,400, nearly 4% higher in the past 24 hours, after the lower-than-expected inflation report. Previously, inflation fell quickly in 2022 and 2023 because of the Federal Reserve's interest rate hikes. However, inflation recently stayed above the 2% target, lowering hopes for rate cuts.
Hope for the best of market.
