At the time of writing, the first cryptocurrency is trading near $65,340, having gained 2% over the past 24 hours, according to forklog.com.
In June, annual inflation in the U.S. slowed from 4.2% to 3.5%, compared with a forecast of 3.8%. Core CPI, which excludes food and energy prices, fell from 2.9% to 2.6%.
On a monthly basis, consumer prices fell by 0.4%—the largest decline since April 2020. Lower energy prices were the main contributing factor.
The price of Bitcoin reacted to the CPI release by rising from $62,000 to $64,900 in a matter of minutes.
The price of Ethereum rose by more than 4% following the release of the data, reaching $1,933. According to an analyst going by the username Darkfost, within the first hour after the data was released, trading volume on the Binance platform reached $1.2 billion. A surge in activity was also recorded on the OKX ($23.6 million) and Deribit ($15 million) exchanges.
The expert noted that the rise was driven by an influx of buyers into the derivatives market. According to him, the price movement is speculative in nature and does not yet constitute a sustained trend. Traders continue to monitor the news to capitalize on high volatility.
Following the release of the statistics, the new Fed Chair, Kevin Warsh, testified before the House Financial Services Committee. He highlighted the impact of AI on the economy, calling the technology a disinflationary factor. At the same time, Warsh emphasized that the regulator is not yet ready to declare victory over inflation, nor did he signal any plans to lower the benchmark interest rate.
“Some might look at today’s data and say, ‘Mission accomplished, everything is great.’ I don’t see it that way,” he said.
The probability of a key rate hike at the July 28–29 meeting has fallen from about 42% to 12.3%.
