Bitcoin, Ether rallies on lower-than-expected Inflation data

Bitcoin and Crypto Markets Surge on Positive Inflation Data

The digital asset market rallied following the release of the May CPI data, which showed a slight decline in inflation. Bitcoin (BTC), Ether (ETH), and other major cryptocurrencies experienced significant gains.

Bitcoin Jumps on Positive News

Bitcoin surged by 2% immediately after the data announcement. The unadjusted CPI annual rate came in at 3.3%, below the expected 3.4% and down from the previous 3.4%. This news fueled a rally, pushing BTC towards the $70,000 mark.

Other Cryptocurrencies Rise

Ether (ETH) spiked by over 3% after the data release. Solana (SOL) also saw a significant increase, with its price rising by more than 3%. The cumulative crypto market cap increased by over 3%, surpassing $2.53 trillion.

Inflation Data Breakdown

The unadjusted core CPI annual rate fell to 3.4%, lower than the anticipated 3.5% and the previous 3.6%. However, CPI remained flat month-over-month, indicating a modest easing of inflation.

Market Reaction

Stock futures climbed and Treasury yields dropped in response to the data. Energy prices declined, with gas prices falling by 3.6%. Shelter inflation remains a challenge, increasing by 0.4% monthly and 5.4% annually.

Other Token Performance

PEPE, a popular meme cryptocurrency, added another 13% in the last 24 hours, joining a trend of rising meme tokens. PEPE has gained 50% in the past 30 days.

Dogwifhat (WIF), another meme cryptocurrency, also saw major gains, surging by 11% in the last 24 hours.