CPI Data Boosts Crypto Market with Lower-than-Expected 3.3% Inflation Rate
On June 12, 2024, the U.S. Consumer Price Index (CPI) data was released, showing a lower-than-expected inflation rate of 3.3% year-over-year. This was seen as positive news for the cryptocurrency market, as lower inflation could potentially lead to a more dovish stance from the Federal Reserve, which in turn could lead to lower interest rates.
Following the release of the CPI data, the cryptocurrency market experienced a significant pump, with Bitcoin and other major cryptocurrencies seeing a surge in prices. The lower inflation rate was seen as a bullish signal for the crypto market, as it could lead to increased investor confidence and a shift towards riskier assets like cryptocurrencies.
The CPI data also had an impact on the broader financial markets, with stock futures rising sharply following the release of the data. This suggests that the lower inflation rate was seen as positive news across different asset classes, not just in the crypto market.
Overall, the release of the CPI data on June 12, 2024, was a significant event for the cryptocurrency market, leading to a pump in prices and increased investor confidence.