Crypto market rebounds on soft CPI data

Crypto markets surged on June 12th after positive inflation data from the U.S. Consumer Price Index (CPI) for May.

CPI data remained unchanged since April, with a 3.3% year-over-year (YoY) rate, below the predicted 3.4%. Core CPI YoY levels declined to 3.4% from 3.6%, the lowest since April 2021. Analysts had anticipated a 3.5% point for this index.

Following the improved data, the total crypto market capitalization increased by 3% to reach $2.65 trillion, according to CoinGecko. Bitcoin (BTC) broke a two-day decline with a 4% surge, exceeding $69,300, while Ethereum (ETH) rose by almost 3% to $3,639 at the time of writing.

Other top 10 digital assets, including BNB, Solana (SOL), XRP, Dogecoin (DOGE), and Toncoin (TON), also experienced moderate gains on the day.

Some market analysts believe that the crypto market's uptick may continue due to expectations of a neutral outcome from the upcoming Federal Open Market Committee (FOMC) meeting. A neutral outcome could potentially lead to liquidity inflows into cryptocurrencies and other risk assets.