Today’s release of the US CPI data from the U.S. Bureau of Labor Statistics revealed a decrease in inflation to 3% in June, down from 3.3% the previous month and below Wall Street’s expectations. This cooling in inflation has positively impacted market sentiment, which had been negatively affected by a recent significant sell-off by the German government.
The detailed report indicated that on a month-over-month basis, CPI inflation rose slightly by 0.1%, aligning with market forecasts after remaining unchanged from April to May. Despite this minor increase, the annual data showing a decrease has led to increased optimism across financial markets, particularly within the cryptocurrency sector.
This decrease in inflation has also sparked speculation about potential monetary policy adjustments. Market participants are now increasingly anticipating a possible rate cut by the U.S. Federal Reserve as early as September, given the easing inflation pressures.
Furthermore, Core CPI, which excludes volatile food and energy prices, also showed a decrease, moving down to 3.3% in June from 3.4% in May. The month-over-month core CPI also slowed to 0.1%, down from 0.2% in May and falling short of market predictions.
These latest figures are likely to fuel optimism for a sustained positive trend in the crypto market, as investors view the cooling inflation as a sign of potential stability and lower interest rates, which can make riskier assets like cryptocurrencies more attractive.
