Key facts
- Bitcoin rose approximately 1.9% in 24 hours to around $62,600.
- Core U.S. inflation increased by 0.2% month-over-month and 2.9% year-over-year, below forecasts.
- Headline inflation rose 0.5% monthly and 4.2% annually, driven by energy prices.
- Bitcoin has shown resilience with less than a 1% weekly decline, holding its 200-week average.
- Ether, XRP, and Solana experienced significant weekly losses, down 6.5%, 7.5%, and 7.4% respectively.
- The Federal Reserve's upcoming meeting on June 17 is being closely watched for interest rate guidance.
Cryptocurrencies saw a modest uplift as U.S. inflation data indicated contained underlying price pressures. Bitcoin led gains, rising approximately 1.9% to trade around $62,600. While headline inflation increased 0.5% monthly and 4.2% annually, driven by energy prices, core inflation—excluding food and energy—rose a more subdued 0.2% month-over-month and 2.9% year-over-year, falling short of forecasts.
The current market bounce appears concentrated in Bitcoin, which has seen less than a 1% weekly decline and maintained its 200-week average. In contrast, Ether, XRP, and Solana experienced significant weekly losses of 6.5%, 7.5%, and 7.4% respectively. BNB showed relative resilience with a 2.1% weekly loss.
Market participants are awaiting the Federal Reserve's June 17 meeting, where no interest rate changes are expected. Persistent headline inflation could support restrictive monetary policy, while softer core inflation might argue for a less hawkish stance.
Separately, oil prices fell after paring earlier gains triggered by military exchanges between the U.S. and Iran. Major U.S. stock indexes closed lower, with chipmakers extending recent declines, though Wall Street futures were up before Thursday's opening bell. Oracle shares plunged after its earnings report due to a growing debt pile. The European Central Bank is expected to deliver a rate rise, with markets anticipating further tightening moves later this year. Next week also brings an expected Bank of Japan rate rise and a Federal Reserve meeting.