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Bitcoin trades below $63,000 despite softer inflation concerns after US CPI data

Created at 11 Jun · 6:35 AM1 source↑ Market-relevant
IN SHORT

Bitcoin fell below $63,000 on Thursday, trading at $62,740, despite U.S. Consumer Price Index data meeting expectations. While the inflation figures eased concerns about aggressive Federal Reserve policy, they were insufficient to drive a sustained rally in the cryptocurrency market.

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Key Numbers

$63,000Bitcoin trading mark
4%12-month CPI increase
April 2023Largest CPI gain since
$62,740Bitcoin trading price
2%Bitcoin and Ethereum 24-hour gain
$1,656Ethereum trading price
3%Altcoin gains
2%Hyperliquid price decrease
2%Global crypto market cap increase
$2.15 trillionGlobal crypto market capitalization

Who's Involved

Labor Department's Bureau of Labor Statistics
Released the latest U.S. CPI data
Akshat Siddhant
Lead quant analyst at Mudrex
Mudrex
Platform providing market analysis
CoinX Research Team
Provided commentary on market sentiment
CoinMarketCap
Source for global crypto market capitalization data

↳ Why This Matters

The subdued performance of Bitcoin and other cryptocurrencies, despite softer inflation data, suggests that broader market sentiment remains cautious, potentially indicating a lack of strong conviction for a significant upward trend in the short term.

Key facts

  • Bitcoin traded below $63,000 on Thursday.
  • The U.S. Consumer Price Index increased 4% in the 12 months through May.
  • Bitcoin was trading at $62,740.
  • Ethereum traded at $1,656.
  • The global crypto market capitalization rose 2% to $2.15 trillion.

Bitcoin traded below the $63,000 mark on Thursday, despite the latest U.S. Consumer Price Index (CPI) data coming in line with expectations. The CPI increased 4% in the 12 months through May, marking the largest gain since April 2023, according to the Labor Department's Bureau of Labor Statistics. The cryptocurrency was trading at $62,740.

In the preceding 24 hours, both Bitcoin and Ethereum saw a 2% increase, with Ethereum trading at $1,656. Among other major altcoins, BNB, XRP, Solana, Tron, Dogecoin, and Cardano gained up to 3%, while Hyperliquid fell by 2%.

Akshat Siddhant, Lead quant analyst at Mudrex, noted that Bitcoin remains range-bound between $60,500 and $62,500, struggling to build momentum despite the CPI data. He stated that while the inflation print reduced concerns about a more aggressive Federal Reserve stance and improved risk sentiment, it was not sufficient to trigger a sustained rally.

The global crypto market capitalization rose by 2% to $2.15 trillion, according to CoinMarketCap. Despite a minor recovery, overall market sentiment continues to be characterized by extreme fear, as indicated by the CoinDCX Research Team.

Frequently asked questions

The U.S. Consumer Price Index increased 4% in the 12 months through May, which was the largest gain since April 2023.

Bitcoin traded below $63,000, specifically at $62,740, despite the CPI data meeting expectations.

Ethereum rose 2% to $1,656, while BNB, XRP, Solana, Tron, Dogecoin, and Cardano gained up to 3%. Hyperliquid fell 2%.

Despite a slight recovery in market capitalization, overall market sentiment remains under extreme fear.

What Happens Next

01Markets will continue to monitor Federal Reserve communications for further clues on monetary policy.
02Investor sentiment will be key to observing any potential shift from 'extreme fear'.

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Cadence

How It Developed

US CPI data for May showed a 4% increase over 12 months.
Bitcoin traded below $63,000 on Thursday.
Bitcoin was trading at $62,740.
Ethereum traded at $1,656.
The global crypto market capitalization increased by 2% to $2.15 trillion.
Overall market sentiment remained under extreme fear.

Sources

T1
Bitcoin trades below $63,000 despite softer inflation concerns after US CPI dataThe Economic Times

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