The U.S. Consumer Price Index (CPI) was flat in May, beating economist forecasts for a 0.1% rise and down from 0.3% in April.
On a year-over-year basis, CPI was up 3.3%, compared to analyst forecasts and the previous month's reading at 3.4%.
Bitcoin ($BTC )welcomed the soft inflation read, jumping to $69,400, up nearly 4% over the past 24 hours.
After inflation readings rapidly fell in 2022 and 2023 as the Federal Reserve jacked up interest rates, the trend stalled in the previous months at stubbornly higher levels than policymakers' 2% target, pouring cold water on market participants' expectations of rate cuts.
Crypto prices have been "highly sensitive" to U.S. economic data recently, K33 Research noted in a report earlier this week.
Investors will also watch closely the Fed's "dot plot" to be released later today of the Federal Market Open Committee members' interest rate projection, which could move asset prices.
