Bitcoin wobbles near $61K as US CPI data looms, inflation fears mount
Bitcoin hovers near $61,000 as traders await US May CPI data expected to show a 4.2% year-on-year inflation rate, raising the risk of Fed rate hikes and further crypto sell-offs.
Bitcoin is wobbling near $61,000 as traders brace for the release of US May consumer price index data, which could determine the next leg for the world's largest cryptocurrency.
The US Bureau of Labor Statistics is set to publish the May CPI at 8:30 a.m. ET. Economists polled by Reuters expect the headline figure to show a 4.2% year-on-year increase, accelerating from April's 3.8% reading and marking a three-year high. Such a print would put inflation more than two full percentage points above the Federal Reserve's 2% target, reinforcing expectations that the central bank will need to keep interest rates higher for longer. Bitcoin has already been under pressure from rate-hike fears, and a hot CPI reading could trigger a sharp sell-off across risk assets, including cryptocurrencies. Traders can monitor the immediate market reaction on NowPrice's live crypto dashboard to track bitcoin's price action against key support levels.
Looking ahead, the focus will shift to the Fed's policy meeting next week, where the central bank will update its economic projections and dot plot. Any hawkish revision to the rate path could extend bitcoin's decline, while a softer tone might offer relief. The $60,000 level is seen as a critical psychological support; a break below could open the door to further downside toward the $55,000 area.