Benzinga - Lower-than-expected CPI data has boosted Bitcoin's (CRYPTO: BTC) price higher thereby a 3% increase in global crypto market capitalization.
What Happened: Annual inflation rate slowed more than the economists expected in May, pushing hopes for interest rate cuts this year ahead of a pivotal Fed meeting later on Wednesday.
Notable crypto trader Michaël van de Poppe cited the CPI data and stated, "Dollar and Treasury Yields are dropping significantly as the markets are expecting rate cuts to be happening." He remains bullish on altcoins and Bitcoin and had predicted a bounce in case of positive news.
Reflecting an immediate optimism, Bitcoin prices spiked to $69,600 for a brief period, marking a gain of around 4%. Altcoins and meme coins followed suit with Dogecoin (CRYPTO: DOGE) up 5%, while Pepe (CRYPTO: PEPE) and Dogwifhat (CRYPTO: WIF) spiked 13% and 8%, respectively. Shiba Inu (CRYPTO: SHIB) is up 2%.
Kevin sees it as "the best possible news we could have gotten," predicting rate cut guidance for later in the day.
Inflation on all ends came in much cooler than expected. This is the best possible news we could have gotten. FOMC is gonna be very interesting later! We might finally get real rate cut guidance! Feds futures are moving in line. #Crypto #BTC #ETH #Dogecoin— Kevin (@Kev_Capital_TA) June 12, 2024
Also Read: Bitcoin Soars Above $69K On Improved Inflation Data Print
Why It Matters: Analytics firm Santiment wrote "it’s a signal that inflation is slowing, increasing the likelihood of crypto rising." After the data release, Javon Marks sees Bitcoin's current technical target at $116,652.
Rekt Capital marked extreme fear and extreme greed in one Bitcoin chart immediately after the data release.
#BTCExtreme Fear and Extreme Greed in one Bitcoin chart$BTC #Crypto #Bitcoin pic.twitter.com/qal4jeKqo1
— Rekt Capital (@rektcapital) June 12, 2024
IntoTheBlock data shows large transaction volumes increasing by 19.2%, while daily active addresses spiked by 4%. Exchanges net flows increased by 211.7%. Transactions greater than $100,000 surged from 7,782 transactions on June 10 to 9,074 transactions to June 11. 95% of Bitcoin holders are currently in profit.
What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
Read Next: Bitcoin, Ethereum, Dogecoin Dump Before FOMC Wednesday: Here’s What They Did After Prior Meetings
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