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That would put inflation more than two full percentage points above the Fed’s 2% target. Concerns the Fed is likely to raise interest rates are already weighing on bitcoin, and more evidence is likely to send the largest cryptocurrency even lower.
That said, bitcoin’s reaction will depend less on the headline figure and more on what’s underneath it.
The key question is whether inflation broadened across multiple categories or remained concentrated in energy. If it’s the latter, markets may well dismiss the print as a transitory effect of the first-quarter spike in oil prices driven by the war with Iran.
This looks plausible given the CBOE Oil Volatility Index (OVX) has already cooled to pre-war levels and WTI crude fell over 16% to $87 a barrel last month. It continues to trade around those levels.
“A 0.3% MoM core inflation reading (consensus est.) could prompt a small initial rally in rates, if driven by transitory factors (e.g., fuel surcharges),” MUFG Research said. “But if inflation broadens out, it will impact a market already on edge triggering a minor sell-off.”
For bitcoin traders, a hotter-than-forecast figure across several sectors raises the probability of a break below $60,000. According to CME Fed fund futures, traders are already pricing in a year-end rate at least 25 basis points higher than the current 3.50%-3.75% range.
A downside surprise, on the other hand, could trigger a relief rally, especially given BTC is looking oversold on key indicators, such as the RSI.
Either way, volatility is likely to be elevated. The direction is the CPI’s to decide. Stay alert!
Read more: For analysis of today’s activity in altcoins and derivatives, see Crypto Markets Today . For a comprehensive list of events this week, see CoinDesk’s “Crypto Week Ahead.”
Japan’s three largest banks aim for joint stablecoin issue by March (CoinDesk): Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Financial Group (SMBC) and Mizuho Financial Group will establish a council to explore operational frameworks and prepare for the issuance of stablecoins this financial year.
Oil choppy after U.S. completes Iran strikes following Apache helicopter attack (CNBC): U.S. WTI oil futures for July delivery were little changed at $88.19 a barrel. Brent futures for August rose 0.14% to $91.58. This after the U.S. launched strikes against Iran, raising concerns that renewed attacks could threaten shipping through the Strait of Hormuz.
Bitcoin ETFs are no bigger today than when Trump won the election (CoinDesk): U.S. spot bitcoin exchange-traded funds have fallen out of investor favor. Total dollar value of net assets across the 11 ETFs stood at $77.58 billion on June 9, the same level seen after President Donald Trump won the election in November 2024.
Today’s signal
XRP’s weekly price swings in candlestick format. (TradingView)
The chart shows XRP’s weekly price action in candlestick format since late 2023.
Prices for the payments-focused cryptocurrency have dipped below their 200-week simple moving average (SMA) in a sign of a deepening bear market. This puts XRP at a disadvantage relative to bitcoin, which is still trading around its 200-week SMA.
The breakdown signals there’s potential for a deeper slide toward next support at $0.95, the high hit three years ago. This is the level where sellers overpowered buyers in July 2023, reversing the bounce at that time.
