Bitcoin price rejects CPI boost as market Fed rate pause odds near 95%

At the June 12 Wall Street opening, Bitcoin (BTC) returned to its prior position after a short macroeconomic data surge did not alter the existing situation.

Markets expect first Fed pause since 2021

Data from Cointelegraph Markets Pro and TradingView indicated that BTC/USD was staying close to $26,000, refraining from significant swings.

The biggest cryptocurrency experienced a short-lived increase towards $26,500 due to the recent U.S. Consumer Price Index (CPI) result, which was lower than what was anticipated.

Cryptocurrencies, which were expected to be a benefit to risky investments, were met with hesitance on the day, as the Federal Reserve had made remarks and more economic data is anticipated in the near future.

Bets that the Fed will pause its rate hike cycle after the FOMC meeting on June 14 have increased following the CPI event. According to CME Group’s FedWatch Tool, the likelihood of the Fed pausing is now over 90%, having been at 75% earlier in the day.

“The disinflation trend persists!” exclaimed financial commentator Tedtalksmacro.

QCP Capital, a trading firm, also assumed that “the consensus is accurate” – that the Fed would not increase rates further – at least for now.

“According to high frequency indicators, US inflation is decreasing quickly, allowing the FOMC to take a break at this week’s meeting for the first time in over a year,” the market update on the day declared.

QCP conceded that future FOMC meetings may lead to varying outcomes, in order to placate more hard-line committee members.

“Additionally, the substantial increase in stock prices resulting in looser financial conditions will be in the back of their minds,” the statement continued.

BTC price: Where’s the volatility?

Commentators remarked that the difference between BTC/USD in CME Bitcoin futures had been bridged over the weekend.

Five things to know about Bitcoin this week, including the SEC, CPI, and a ‘strong rebound’.

Having analyzed what could come next, Michaël van de Poppe, founder and CEO of trading firm Eight, felt conflicted, yet still identified $25,000 as a possible lower limit for entry.

Data uploaded to social media by monitoring resource Material Indicators from the Binance order book revealed a lack of liquidity close to the spot price before the print, with distinct support and resistance levels.

“The Bulls are hoping that the Economic Data due to be released today and tomorrow will help them to regain the range,” was mentioned in a previous post in reference to the daily timeframes.

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