Bitcoin Holds Gains as Core Inflation Cools, Altcoins Lag

Bitcoin rose 1.9% over 24 hours to roughly $62,600 after a softer-than-expected core inflation reading, leading the major cryptocurrencies. However, the bounce was shallow and concentrated in bitcoin, with most altcoins failing to hold their gains.

The US core Consumer Price Index, which excludes food and energy, rose just 0.2% in May, below the 0.3% forecast, and 2.9% year-over-year. Headline inflation accelerated to 4.2% annually, the fastest since April 2023, driven by a 3.9% monthly surge in energy costs amid rising oil prices tied to the Iran conflict. The Federal Reserve closely watches core inflation as its preferred gauge, and the cooler reading reinforced expectations that the central bank may pause its rate-hiking cycle. For crypto traders, lower inflation reduces the opportunity cost of holding non-yielding assets like bitcoin and eases pressure on risk assets. Traders can monitor these moves in real time on NowPrice's live crypto dashboard.

Looking ahead, markets will focus on the Fed's next policy decision and any guidance on rate cuts. The divergence between bitcoin's resilience and altcoin weakness suggests traders are rotating into the largest digital asset as a relative safe haven within crypto. Key levels to watch include bitcoin's ability to hold above $62,000 and whether altcoins can reclaim recent highs. On-chain data showing exchange reserve drawdowns could also provide clues on supply dynamics.