Bitcoin briefly taps $31,000 amid lower-than-expected US CPI number in June

Bitcoin gained a few hundred dollars just minutes after the US announced the CPI numbers for June.

It is worth noting that both the core and the overall consumer price index were below estimates.

• according to a Analysis General estimates, made before the CPI announcement for June, suggested a decline in the inflation rate for another month. The main reason for this is that the cost of fuel and used cars have come down in the last few months.
• However, the situation with the core CPI, which excludes more volatile sectors such as food and energy, was expected to be different and still high, possibly leading to another interest rate hike by the US Federal Reserve.
• However, in reality, both the numbers were slightly lower than expected. Regular CPI was up 3% year-over-year, which was 0.1% below estimates. Core CPI for June was up 4.8% year-on-year, while expectations were 5%.
• Bitcoin reacted with immediate volatility, taking the asset to around $31,000 (on Bitstamp) before the asset quickly pulled back to its opening levels. Recall that the cryptocurrency tried decisively to surpass $31,000 for a few weeks, but to no avail after several rejections so far.

Bitcoin gained a few hundred dollars just minutes after the US announced the CPI numbers for June.

It is worth noting that both the core and the overall consumer price index were below estimates.

• according to a Analysis General estimates, made before the CPI announcement for June, suggested a decline in the inflation rate for another month. The main reason for this is that the cost of fuel and used cars have come down in the last few months.
• However, the situation with the core CPI, which excludes more volatile sectors such as food and energy, was expected to be different and still high, possibly leading to another interest rate hike by the US Federal Reserve.
• However, in reality, both the numbers were slightly lower than expected. Regular CPI was up 3% year-over-year, which was 0.1% below estimates. Core CPI for June was up 4.8% year-on-year, while expectations were 5%.
• Bitcoin reacted with immediate volatility, taking the asset to around $31,000 (on Bitstamp) before the asset quickly pulled back to its opening levels. Recall that the cryptocurrency tried decisively to surpass $31,000 for a few weeks, but to no avail after several rejections so far.