US Inflation Data is Out: How It Can Affect Bitcoin?

On a year-over-year basis, the CPI rose to 2.4%, signaling stable inflation dynamics as the Federal Reserve continues to weigh its next policy steps.

Shelter costs were the main contributor to the monthly rise, climbing 0.3%. Meanwhile, food prices also rose 0.3%, reflecting broad-based increases both at home and in restaurants. In contrast, the energy index dropped 1.0% in May, with gasoline prices falling notably. Core CPI—which excludes food and energy—also rose 0.1%, driven by gains in medical care, education, and personal care, though categories like vehicles and apparel saw price declines.

Over the past 12 months, core inflation remains slightly elevated at 2.8%, while the overall energy index is down 3.5% year-over-year. Food prices are up 2.9% annually, reflecting ongoing but moderate cost pressures in essential consumer goods.

Implications for Bitcoin

For BTC, cooler inflation data may reduce pressure on the Federal Reserve to maintain restrictive interest rate levels. This could strengthen bullish sentiment in the crypto market, as lower rates tend to improve liquidity and risk appetite. Investors may view today’s CPI print as a signal that monetary easing could be back on the table later in the year—potentially fueling renewed upward momentum for BTC.

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