The US Bureau of Labor Statistics (BLS) reported that inflation declined to 3.3% on a year-on-year (YoY) basis. This was a surprising change in the headline Consumer Price Index (CPI), as the forecasts for the month of May were at 3.4%.
The core CPI also rose to 3.4% on a yearly basis, considerably lower than April’s 3.6% and the estimation of 3.5%. The core CPI differs from the headline CPI due to the exclusion of volatile food and energy prices.
While the macro-financial market came under heavy selling pressure, the crypto market took a different route. Bitcoin’s price marked an uptick, adding to the intra-day growth of 3.7%, bringing the trading price back above $70,000.
This was a crucial recovery for BTC as the anticipation surrounding CPI caused a massive sell-off in the crypto market just this week. As a result, Bitcoin’s price fell from $70,000 to $66,000 in 72 hours.
Reclaiming $70,000 is crucial in initiating a recovery for BTC and would also push the crypto asset towards $71,800. Breaching this would bolster Bitcoin’s price to chart a new all-time high above $73,650.
On the other hand, if $70,000 is not secured as a support floor, BTC could drop back down to test $68,500. If this critical support floor is broken, it would invalidate the bullish thesis.
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