Bitcoin Reacts Positively to Latest Inflation Data
As U.S. inflation continues to rise, Bitcoin remains resilient, with a surge in price following the release of June’s Consumer Price Index (CPI) data. The cryptocurrency market sees more optimism than uncertainty, with bulls outnumbering bears.
The latest U.S. inflation data for June 2025 shows a second consecutive monthly increase, with the CPI reaching 2.7%, the highest level since February. The uptick is driven by higher costs in food, transportation, and used vehicles, indicating persistent price pressures in the economy. While energy prices declined, the pace slowed, with gasoline and fuel oil prices falling less steeply than before.
Core inflation also saw a slight increase year-over-year, raising concerns about sticky inflation. In response, the market turned cautious, leading to a 2.1% climb in the U.S. Dollar Index to 98.5 in July.
Bitcoin’s Reaction to Inflation Data
Following the release of the CPI data, Bitcoin experienced a notable uptick in price, jumping from $115.73 to $118.99, a 1.91% increase in a 24-hour period. This surge reflects growing optimism among investors, fueled by cooling inflation and a softer core CPI reading.
Data from IntoTheBlock shows that 97.14% of Bitcoin holders are “in the money,” with their holdings valued above the initial purchase price. Only 0.57% of holders are “out of the money,” indicating minimal downside pressure in the market.
The Bulls and Bears indicator by IntoTheBlock also points to a slight dominance of bulls, with 111 bulls versus 110 bears, signaling a narrow but significant tilt toward buying interest.
Overall, these indicators suggest a cautiously optimistic market sentiment, hinting at the potential for further upward momentum in Bitcoin’s price.
Bitcoin Ahead of May’s CPI Release
Before the release of May’s CPI data, the crypto market, including Bitcoin, was facing stagnation and uncertainty. CryptoQuant analysts noted a wait-and-watch approach among investors, leading to subdued volatility in Bitcoin’s price.
Despite the rising inflation concerns, the crypto market now exhibits growing confidence in Bitcoin’s resilience, viewing it as more than just a speculative asset but as a credible player in the financial system.