Bitcoin (BTC) prices remained firm even after the US Bureau of Labor Statistics (BLS) knew about June inflation data, and were worse than what was offered in the market.
Official data show that the Consumer Price Index (CPI) rose 0.3% per month compared to the 0.2% forecast by analysts. In comparisons from year to year, Inflation rate in June was 2.7%. That is, it has increased by 2.6% over 0.1% It was hoping for the market.
The news could prevent the US Federal Reserve from applying interest rate cuts at its next meeting, which will take place on July 30th. Currently, reference rates are maintained in the range of 4.25% to 4.50%.
Biological decisions can slow down bullish gatherings of assets that are considered risky, such as action, Bitcoin, and cryptocurrency.
What happens when interest rates are high Investor risk increases the cost of debt and dissipates appetite. In these contexts, they usually place their holdings on safer instruments such as treasure bonds.
However, after the data was published, at 14:30 (UTC Time Spindle), The BTC price shows strength and estimates above $117,000. As seen in the next 5 minutes of TrainingView candle chart.
This BTC intensity was 2.9% in a year, slightly below the expected 3%, as its underlying consumer price index (CORE CPI) is the most relevant indicator to the Fed by defining its rate policy.
Meanwhile, it should be noted that the market already expects lowering interest rates at the end of July to lower interest rates.
To illustrate this feeling, it is worth taking an example of what happens at Polymarket, a cryptocurrency gambling platform considered as the “source of truth,” as reported by Crypto.
99% of trainers believe that the creatures driven by Jerome Powell will not cut interest rates at the end of the month. Expectations will be set in the future. 43% believe the Fed will reduce its 25 base points from September.
