US Inflation Drops to 3%, Crypto Market Turns Green
The US economy has slightly recovered from the consistent grip of inflation in June. According to the latest report from the Labor Department, the CPI inflation rate has dropped to 3%.
Key points:
- CPI showed a 0.3% drop in June, defying economists’ expectations of 3.1%.
- Core CPI falls to 3.3%, lower than the expected 3.4%.
- Following the report, the crypto market turned bullish.
- Bitcoin reclaimed $59,000, while Ethereum eyes $3,200.
Also read: Compound Finance Website Hijacked: Users Warned Of Phishing Threat
Crypto Market Turns Bullish After US CPI Data Dropped
The inflation rate is lower than the expected number of 3.1% shared by the economists. Earlier data shows that May recorded 3.3% inflation rate.
Even though the market expected several interest rate cuts in 2024, the Fed has maintained its rate range of 5.25-5.55 percent.
The crypto market turned bullish right after the data came out. Bitcoin rose by 2% in the last hour, while Ethereum is eyeing the $3,200 level by rising 3%.
Also read: Pro-Crypto Donald Trump Set To Speak At Bitcoin 2024 Conference
The overall crypto market has been bearish for the past few days. The price of Bitcoin fell as low as $54,000 amidst the Mt. Gox FUD and the German government’s BTC movement.
However, the market has turned bullish after the news of lower than expected CPI numbers. Other altcoins are also showing modest gains of 2-5%.
