Although Powell’s recent speech failed to have much of an impact on the cryptocurrency world, investors are analyzing the next steps for Bitcoin as a risk asset.
The cryptocurrencies Bitcoin rose more than 5% after the US inflation data showed a 3% drop in June, below expectations. In this context, Bitcoin rose more than 2.6% and is now at $58,000. Meanwhile, Ethereum rose 2.5% to $3,100.
In the altcoin world, the gains of more than 5% are led by Bitcoin Cash (5.9%), Near Protocol (5.6%), Cardano (4.1%) and Polygon (3.1%). Although the dollar has been affected by the increase in optimism about the cuts in the US after the words of the president of the Federal Reserve (Fed), Jerome Powellhas provided little support for the price of cryptocurrencies.
In fact, some analysts believe, based on the pattern observed in previous cycles, that Bitcoin is in what could be a summer pause. And despite the rebound observed in recent days, does not compensate for the fall suffered in recent weeks.
US inflation data
The US Consumer Price Index (CPI) fell to 3% year-on-year from 3.3% in May, according to data released by the US Bureau of Labor Statistics. Meanwhile, core inflation, which excludes food and energy, eased slightly to 3.3% from 3.4% previously.
Both figures have fallen below consensus expectations. The market had expected that overall inflation would stand at 3.1%, while the core variable would remain at 3.4%.
In monthly terms, the general CPI fell by 0.1% in the sixth month of the year, also below the estimates made by analysts and recorded last month. In the case of the underlying rate, it has eased by 0.1%, less than the 0.2% of May.
Source: Ambito
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