U.S. inflation data for May showed smaller-than-expected increases, providing a modest boost to Bitcoin (BTC) prices. The Consumer Price Index (CPI) rose 0.1%, below forecasts of 0.2% and April’s 0.2%, according to the Bureau of Labor Statistics.
Year-over-year, the CPI increased 2.4%, slightly under the anticipated 2.5% and up from April’s 2.3%. Core CPI, which excludes food and energy, rose 0.1% in May versus a forecasted 0.3% and April’s 0.2%. Annual core CPI was 2.8%, marginally under the expected 2.9% and consistent with April.
Following the data release, Bitcoin gained approximately 0.6%, trading near $10,980 and closing the past 24 hours up 0.3%. Market expectations remain that the Federal Reserve will start cutting interest rates later this year, with traders fully pricing in two reductions—in September and December—according to the CME FedWatch Tool. This latest inflation report did not alter that outlook.
In traditional markets, U.S. stock futures reversed earlier losses, rising about 0.4%, while the 10-year Treasury yield fell five basis points to 4.45%.