Inflation Data Released in the US: How Did Bitcoin, Dollar, and Gold React?

• According to the US Consumer Price Index data for May, inflation only increased by 0.1% compared to a 0.4% increase in April, lower than expected.
• Annual inflation slowed to 4.0% in May from April, with expectations at 4.1%.
• Before the data was released, Bitcoin, which was trading at $26,240, showed a 0.70% increase to $26,433.

The eagerly awaited inflation data for the US has been released, causing market turmoil and changing expectations for the Fed’s interest rate meeting.

Inflation Data Released in the US

According to the US Consumer Price Index data for May, inflation only increased by 0.1% compared to a 0.4% increase in April, lower than the expected 0.2% increase. Annual inflation slowed to 4.0% in May from April, with expectations at 4.1%.

U.S. CPI: +4% YEAR-OVER-YEAR (EST. +4.1%)
U.S. CORE CPI: +5.3% YEAR-OVER-YEAR (EST. +5.3%)

— CoinOtag EN (@coinotagen) June 13, 2023

The core CPI, which excludes volatile food and energy costs, increased by 0.4% in April and May, in line with expectations. Core CPI fell to 5.3% in May from April, with expectations at 5.3%.

This latest news on inflation comes a day before the results of the US Federal Reserve’s monetary policy meeting. Prior to this morning’s data, market participants had priced in a 76% chance of the Fed’s pause in a historic series of rate hikes since March 2022. After the announcement, the probability of a pause rose to 94.2%.

Bitcoin, Dollar, and Gold’s Reaction

Before the data was released, Bitcoin, which was trading at $26,240, showed a 0.70% increase to $26,433, but then fell sharply to $25,891. BTC is currently trading at around $26,060.

The dollar index was at 103.303 before the data was released. With the release of the data, the DXY fell 0.25% to 103.047. The DXY is currently at a slight recovery of 103.212.

The situation with gold is not much different from Bitcoin. Gold, which was trading at $1,960 before the data was released, saw a rapid increase to over $1,971 with a 0.50% increase, but was unable to sustain its rise and fell to $1,958. The current price of gold is $1,961.