Bitcoin (BTC) and altcoins have experienced sharp declines in recent days. This decline can be attributed to increased tensions related to the U.S.-Iranian conflict, higher conflict-related energy costs, and increased inflation concerns.
Analysts worry that rising energy prices will continue to put upward pressure on inflation, which the Fed has long sought to bring down to its 2% target.
In the face of these concerns, U.S. inflation is also expected to reach its highest level in three years. Inflation last exceeded 4% in May 2023 and is expected to be announced today at 4.2%.
The release of May US inflation data, which the Fed closely monitors when determining interest rates, comes amid talk that the Fed could even raise rates in the face of rising inflation risks.
Here are the US inflation statistics released:
Annual Consumer Price Index: Announced 4.2% – Expected 4.2% – Previous 3.8%
Monthly Consumer Price Index: Announced 0.5% – Expected 0.5% – Previous 0.6%
Annual Core Consumer Price Index: Announced 2.9% – Expected 2.9% – Previous 2.8%
Monthly Core Consumer Price Index: Announced 0.2% – Expected 0.3% – Previous 0.4%
The Consumer Price Index is an important variable used to measure changes in consumer purchasing trends and inflation in the United States.
Bitcoin initial reaction after CPI data!
*This is not investment advice.
