Earlier today, Bitcoin (BTC) briefly climbed above the $110,000 mark after the release of cooler-than-expected US Consumer Price Index (CPI) data. The softer inflation reading strengthens the case for the US Federal Reserve (Fed) to begin cutting interest rates – a development that could benefit risk-on assets like BTC.
Specifically, the headline CPI rose by just 0.1% in May, compared to the 0.2% consensus estimate. On a year-over-year (YoY) basis, the headline CPI registered at 2.4%, slightly below the expected 2.5%, and up from 2.3% in April.
Core CPI – which excludes volatile components like food and energy – also rose by 0.1% in May, versus the forecasted 0.3%. The April figure was 0.2%. On a YoY basis, core CPI came in at 2.8%, marginally lower than the 2.9% consensus.
Following the inflation report, BTC saw modest gains, climbing 0.6% to briefly touch the $110,000 level before retracing slightly. The data has increased the likelihood of a Fed rate cut in the near future.
Meanwhile, crypto analyst Titan of Crypto highlighted a bullish golden cross forming on Bitcoin’s weekly chart. In a post on X, the analyst shared the following chart and emphasized the importance of BTC holding above the $109,000 level to confirm a potential breakout.
A golden cross is a bullish technical pattern that occurs when a short-term moving average (MA) – typically the 50-day – crosses above a long-term MA like the 200-day. This crossover signals a potential shift in momentum and is often seen as an indicator of a sustained upward trend.
