Bitcoin goes up after the June IPC, the Fed online in sight

The cryptocurrency market is gaining momentum, with Bitcoin and the main Altcoins in mind. The increase followed the report on Tuesday American inflation, which showed a slight increase in prices but largely met expectations, encouraging traders to maintain hope for a possible drop in rates by the Fed in September.

Bitcoin bounces after a drop

Before the publication of CPI data, Bitcoin had fallen below $ 116,000, but he has since recovered following the report. Analyst Ali Martinez noted that Bitcoin often drops before the publication of inflation data, then goes back upon leaving the report. This week followed this same diagram. Bitcoin has since exceeded $ 118,000.

Price growth has increased again in June. Overall inflation reached 2.7 % over the past year, slightly higher than 2.4 % of May. This is the highest annual increase in February. Basic inflation, which excludes food and fuel, has been 2.9 %, just below market forecasts. On a monthly basis, overall prices increased by 0.3 %, and the basic prices of 0.2 %.

Inflation figures have brought a certain relief to investors, suggesting that price increases were not strong enough to prevent the Fed from considering a drop in rates. The market reacted rapidly, with a generalized increase in cryptocurrency prices.

Massive entrances and price increase: investors' confidence in the crypto asserts itself

Bitcoin was not the only currency to climb. Ethereum has jumped more than 6 % in the past 24 hours. XRP, Binance Coin (BNB), Solana and Dogecoin have also progressed. XRP increased by 3 %, BNB by 2.4 %, and Solana as well as Dogecoin won 5 %each.

Eugene Cheung, commercial director at OSL, saw in these last figures a positive signal for digital assetsbecause they also increase the probability of a drop in rates by the Fed in September – a measure that could attract more capital in the Crypto market.

This perspective seems to materialize. According to Glassnode, Monday recorded one of the largest daily admissions ever seen in the American Bitcoin Etf for three months. Over 7,500 BTCs were added, and the dynamics continued on Tuesday with 3,400 additional BTC. During this period, outings remained minimal, suggesting strong confidence of investors.

Ethereum funds have also experienced high performance. The entries reached $ 192 million, marking eight consecutive days of earnings. This regular purchase reflects solid confidence in the market.

Inflation, Fed and Bitcoin: What impacts on market prospects?

Even with the rise in prices, the market does not get carried away. Investors remain cautious, awaiting more data to clarify the trajectory of inflation. Although the CPI report of June has brought a certain insurance, uncertainty remains as to the way in which the federal reserve will act at its FOMC meeting in July.

The probabilities of the market are still leaning in favor of a drop in rates in September, with CME Fedwatch evaluating the probability at around 54 %. However, the next key publication, the PPI, could adjust market expectations. If the PPI indicates inflation lower than forecasts, Bitcoin could gain momentum and pull up the entire crypto market. On the other hand, if the PPI shows a stronger inflation, the prices could go back.

For the moment, the overall trend remains upwards. Bitcoin has remained stable despite the recent fluctuations, and the momentum resumes slowly. But many will depend on how the next economic relationships will take place.

Nick Ruck, director at LVRG Research, still sees room for the rise in prices. He believes that the current rally retains its momentum and awaits larger gains in the second half of the year. This perspective is in accordance with Bernstein analysts, who remain among the most optimistic. They suggested that if market conditions remain favorable, Bitcoin could reach up to $ 200,000 before the end of the year.