Bitcoin Rises as US Inflation Falls to Four-Year Low

The record-low inflation rate has had a significant effect on Bitcoin, indicating potential stability in price hikes and impacting market sentiment positively.

The U.S. Bureau of Labor Statistics reported a decrease in the inflation rate to 2.3%, lower than expected forecasts. Bitcoin gained 0.61% in response, continuing a positive trend observed in May 2025. Economist concerns over tariffs have been alleviated despite looming pressures on consumer prices.

The inflation data release highlighted a monthly CPI rise of 0.2%, below the anticipated 0.3%. Wall Street reacted mixed, with the S&P 500 and Nasdaq rising, while the Dow showed a slight dip. Treasury yields marginally increased following the announcement.

Analysts suggest that Bitcoin’s positive momentum might continue, with many setting a future price target of $110,000. Historically, cooler inflation readings often lead to increased investor confidence in cryptocurrency markets, buoyed by positive Federal Reserve prospects.

The inflationary climate remains under scrutiny, with the possibility of tariffs influencing future data. Traders keep a close watch on further economic indicators, reflecting Bitcoin’s growing status as a hedge amid fiscal uncertainties.