Bitcoin price hits $31,000, gears up for recovery with US annual inflation decline to 3% in June
- Bitcoin price rallied to $31,000 within minutes of US CPI release, on Coinbase as market participants rejoiced in a CPI reading below expectations.
- US inflation declined to 3% on a year-on-year basis in June, below the market expectation of 3.1%, according to the US Bureau of Labor Statistics (BLS) report.
- The CPI reading for June has provided a cool-off period to selling pressure on Bitcoin, the asset has the potential to recover in July.
Inflation represented by the US CPI, came in below market expectations of 3.1% for June. With US CPI inflation rate falling within the projected range of 3% on a yearly basis, Bitcoin price spiked higher to hit the $31,000 mark.
BTC and altcoins have the potential to begin recovery in July, as the lower-than-expected CPI figure fills market participants with enthusiasm.
Also read: Breaking: US CPI inflation data declines to 3% in June vs. 3.1% expected
Inflation in the US declines to 3% on yearly basis, paves way for Bitcoin recovery
The US Bureau of Labor Statistics has released the report on US CPI data and the latest inflation numbers have been announced, on Wednesday. Market participants are closely watching the US Federal Reserve’s next FOMC meeting on July 25-26 for clues on direction in which risk asset prices are headed.
Annual inflation declined to 3% in June and marked the twelfth consecutive month of declines. The knee-jerk reaction of Bitcoin traders was to push BTC higher, as a sign of interest and demand for the asset in the macroeconomic environment.
CPI reading June as seen on FXStreet
A lower-than-expected month-on-month and yearly figure has filled traders with optimism for risk assets like Bitcoin and altcoins.
Bitcoin/USD five-minute price chart on Coinbase
At the time of writing, Bitcoin price is $30,818, after its retracement from the $31,000 level, on Coinbase. BTC price is above its three Exponential Moving Averages (EMAs), 10, 50 and 200-day at $30,785.45, $30,742.40 and $30,664.10 respectively.
These levels are expected to act as support in the event of a pullback in Bitcoin price. The $31,000 marks key resistance in Bitcoin’s recovery rally.
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Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
