Bitcoin Reacts As US CPI Data Comes In At 2.7%

Bitcoin is facing intense volatility following the release of the US CPI data for June. Markets are wobbling following the release of slightly hotter-than-expected CPI data as the odds of a Fed rate cut in July slumped to new lows.

US CPI Data Pegged At 2.7% YoY

The US Bureau of Labor Statistics has announced a batch of economic data for June, but the Consumer Price Index (CPI) is raising eyebrows. According to the economic data, the US CPI came in at 2.7%, slightly hotter than the anticipated 2.6%.

The US CPI data of 2.7% is the highest level recorded since February 2025 and is significantly higher than the 2.4% recorded in May. Experts say the release of the new economic data is keeping the markets on edge as cryptocurrency prices wobble within minutes of the release.

Since the release of the data, Bitcoin and other cryptocurrencies have seen their market capitalization fall to $3.71 trillion. Bitcoin bore the brunt of the volatility, rising by 5% within minutes and falling by nearly 4% in under an hour.

At press time, the largest cryptocurrency is trading at 118,181, down by 4.15% from its all-time high of $123, 091. The asset’s volatility comes on the heels of a record-breaking week that saw Bitcoin set new ATHs.

Ahead of the release of the CPI and PPI data, The Kobeissi Letter warned investors of a “big selloff” if data comes in hot, citing inflationary concerns from Trump tariffs.

“US June CPI just came in at 2.7% year-over-year – a touch hotter than the 2.6% estimate,” said the pseudonymous Kyledoops. “Not a massive miss, but enough to keep the Fed guessing and the market on edge.”

As investors make sense of the new economic data, the S&P 500 has breached the 6,300 mark for the first time in history. The index is up 30% over the last three months in a meteoric rally defying analysts’ expectations.

Furthermore, the odds of a Fed rate cut in July to 400-425 bps have fallen to 2.6% while the numbers to keep interest rates steady are at a record high of 97.4%. A strong US job data and rising inflationary concerns from heightened Trump tariffs have doused hopes of a July Fed rate cut ahead of the FOMC meeting in 15 days.

✓ Share:

Aliyu Pokima

Aliyu Pokima is a seasoned cryptocurrency and emerging technologies journalist with a knack for covering needle-moving stories in the space. Aliyu delivers breaking news stories, regulatory updates, and insightful analysis with depth and precision. When he’s not poring over charts or following leads, Aliyu enjoys playing the bass guitar, lifting weights and running marathons.

Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.