U.S. May CPI Falls Short of Expectations, Bitcoin Surges Before Sharp Pullback!

TradingKey – The lower-than-expected May CPI data has weakened expectations for a Federal Reserve rate cut, triggering a volatile reaction in Bitcoin’s price.

On Thursday, June 12, Bitcoin (BTC) continued its decline, dropping nearly 2% to a low of $107,320, raising concerns that it may retest the $100,000 psychological level.

Bitcoin Price Chart – Source: TradingView.

Following the release of U.S. May CPI data, Bitcoin initially surged past $110,000 but quickly reversed, dragging the broader crypto market lower. As of the latest update:

- Ethereum (ETH) fell 1.07%,

- Ripple (XRP)  dropped 1.84%,

- Solana (SOL) declined 3.74%.

Economic data showed:

- May CPI YoY: 2.4%, below the expected 2.5%.

- MoM CPI: 0.1%, lower than the forecasted 0.2%.

- Core CPI YoY: 2.8%, missing the 2.9% projection.

- MoM Core CPI: 0.1%, below the expected 0.3%.

The weaker-than-expected inflation figures indicate continued easing in price pressures, further dampening expectations for a June rate cut by the Federal Reserve. As a result, the crypto market’s short-term rebound has stalled.