Key dealers
- Bitcoin’s price has risen over $ 110,000 as US inflation data came better than expected.
- To facilitate the tariff problems and favorable inflation trends are predicted to drive Bitcoin to a continued rally.
Bitcoin’s award recycled $ 110,000 on Wednesday morning and grew shortly after the United States can inflation report came under the expectations of economists, according to Tradingview data.
At press time, the largest digital asset was about $ 110,300, which highlighted a small profit over the past 24 hours.
Nic Puckrin, crypto analysts, investors and founders of The Coin Bureau, believe that Bitcoin has further upward potential because inflation is milder than expected and market fear around Trump’s customs has dropped.
Trump today announced about Truth Social that the United States had reached a new trade agreement with China, pending the final approval of both leaders. He added that the United States would receive 55% customs and China would get 10%.
“Despite all the predictions about destruction and gloom, we are now almost halfway through the year, and the inflation remains in its bottle. Today’s CPI report confirms it – inflation is not as bad as everyone had feared, and risk resources will love this confirmation,” Puckrin said in a Wednesday.
The inflation rate from year to year rose up to 2.4% in May from 2.3% in April, slightly below the 2.5% forecast, despite concerns that customs could increase inflation, according to the Department of Labor Consumer Price Index.
May was generally seen as the first checkpoint to judge whether Trump’s recently escalated customs would affect the CPI.
Most economists believed that the effects would start to emerge in consumer prices now. However, the latest CPI tasks showed only mild inflation, which indicates that either the tulle forces have not yet been realized or less influencing than expected.
“The tariffs that haunted the market so much earlier this year have gone back and softened almost completely. When the US and China sign a deal – which they have already completed – we will mainly return to the status quo,” pronounced puck.
The analyst noted that two deflation factors, including surplus inventions and declining housing prices, could drive an overall trend with lower inflation in the coming months, which potentially encourages Fed to lower prices and lead to the next Bitcoin rally.
“Now we dealers are stuck with all the surplus of inventory they bought to prepare, which they will need to come loose in the coming months at lower prices,” Puckrin explained.
On housing costs, which account for about a third of the CPI index, the analyst suggested that Trump’s deportation policy will reduce the demand for housing. With fewer people who need home, rents and housing prices can decrease, which would lower the total inflation rate.
“Regardless of the remaining consumer ability, I expect to see inflation trends lower throughout the year, which would also give the Fed confidence to finally lower prices again,” he noted. “And this is what will push Bitcoin into the last part of its rally this cycle and hopefully finally bring retail investors back to the crypto market.”
Fed will convene its upcoming central bank meeting next week to announce its decision on interest rates. The market players expect to be largely that the Fed will maintain current interest rate levels during at least September, according to Reuters Polls.
In response to Wednesday’s CPI report, President Trump described the figures as “large numbers” and renewed his call to the central bank to lower interest rates by a full percentage point.