U.S. inflation data came in softer than expected in June, and crypto prices moved higher immediately after the release. According to ChainCatcher, the U.S. Consumer Price Index fell 0.4% month over month, marking the largest monthly decline since April 2020. The annual CPI rate dropped to 3.5% from 4.2% in May, below the 3.8% market expectation. Core CPI eased to 2.6%, also below expectations, while remaining flat on a monthly basis.
Major crypto assets rose after the data. Bitcoin moved from about $62,000 to $64,900, while Ether gained 7% to $1,884. Around $300 million in short positions were liquidated during the move.
At a congressional hearing, Federal Reserve Chair Kevin Warsh said the Fed has “zero tolerance” for persistent inflation. He added that if policy is handled correctly, the rise in inflation over the past five years will become a thing of the past. Asked about the latest CPI print, Warsh said he does not agree with the view that the job is done and did not offer guidance on the next policy step.
U.S. June inflation came in below expectations, and crypto markets reacted higher after the release, according to ChainCatcher.
The Consumer Price Index fell 0.4% month over month in June, the biggest monthly decline since April 2020. The annual rate dropped to 3.5% from 4.2% in May, below the 3.8% expectation.
Core CPI eased to 2.6%, also below expectations, and was flat on a monthly basis.
Major crypto assets moved up after the data. BTC rose from about $62,000 to $64,900. ETH gained 7% to $1,884. Around $300 million in short positions were liquidated.
At testimony before Congress, Federal Reserve Chair Kevin Warsh said the Fed has “zero tolerance” for persistent inflation. He said that if policy is correct, the rise in inflation over the past five years will become a thing of the past.
When asked about the CPI data, Warsh said he does not agree with the view that the job is done. He did not provide guidance on the next policy move.
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