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Bitcoin and Ether surge after CPI cools

June CPI fell 0.4% month over month, taking the annual rate to 3.5% and helping liquidate about $300 million in short positions, according to Decrypt.

Reported · Written up by our desk · Market Structure

Crypto prices jumped after the latest June inflation data came in cooler than expected, with Bitcoin moving from roughly $62,000 to about $64,900 and Ethereum rising about 7% to around $1,884 within minutes, Decrypt reported in its Morning Minute.

The CPI print also shifted rate expectations ahead of the Fed’s July 28 to 29 meeting, which helped ease the pressure that has constrained crypto prices through much of the summer, the outlet said.

Decrypt said core CPI cooled to 2.6%, was flat on the month, and came in under forecasts, while roughly $300 million in short positions were liquidated as bears were forced out.

In parallel, Decrypt noted Fed Chair Kevin Warsh testified to Congress soon after the data release, emphasizing that the inflation surge from the last five years could become “a thing of the past” if the Fed gets policy right, though he also pushed back on declaring “mission accomplished” and did not provide forward guidance.

Latest closeBitcoin $65,260.12 ▲0.5%|Ethereum $1,930.60 ▲2.2%

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