Bitcoin and Altcoin Prices Rise After US Publishes Encouraging June Inflation Data

BTC jumped to over $59,000 on Thursday, up from last week's low of $53,700. Other tokens like Mantra (OM), Notcoin (NOT), AAVE (AAVE), and JasmyCoin (JASMY) rose by double digits.

Bitcoin and other cryptocurrency prices rose sharply on Thursday after the US government announced weaker than expected inflation figures for June.

BTC price rose to over $59,000 on Thursday, up from last week’s low of $53,700. Other tokens also posted impressive gains, with Mantra (OM), Notcoin (NOT), AAVE (AAVE), and JasmyCoin (JASMY) rising by double digits.

US inflation data showed that the headline consumer price index (CPI) dropped from 0.0% to -0.1% in June, lower than the median estimate of 0.1%. The headline CPI dropped from 3.3% to 3.0%, also lower than the median estimate of 3.1%. At the same time, the core CPI dropped from 0.2% to 0.1% and from 3.4% to 3.3%.

These numbers will likely influence the next actions of the Federal Reserve. In a statement this week, Jerome Powell noted that the bank would consider cutting rates if inflation continued falling. Most economists expect the Fed to deliver its first interest rate cut in its September meeting.

High-frequency data also showed that the manufacturing and non-manufacturing PMIs dropped below 50 in June.

Another report by the Bureau of Labor Statistics (BLS) showed that the unemployment rate rose to 4.1% while wage growth slowed.

Cryptocurrencies tend to perform well when the Fed turns dovish, as seen earlier this year when Bitcoin rose to a record high while the Fed signaled potential rate cuts. Interest rate cuts will likely push investors to move from safe money market funds to riskier assets like Bitcoin, Mantra, and Notcoin. Other altcoins like Ondo Finance, Near Protocol, and Pepe could also continue rising.

These coins could join other assets like stocks in their strong rally, with the Nasdaq 100, S&P 500, and Dow Jones all jumping to record highs.

However, the crypto industry faces other risks that could affect prices. For example, Bitcoin’s available supply is increasing as the German government continues dumping its holdings. Miner capitulation persists, while Mt.Gox distributions remain continuing.

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