Bitcoin Rallies on Cooling CPI, Fed Rate-Cut Hopes and Tariff Easing
Bitcoin staged two consecutive jumps after U.S. inflation data and trade headlines favored risk assets. May’s Consumer Price Index first slipped to 3.3% year-on-year, lifting Bitcoin above USD 69,500. A later revision showed CPI slowing further to 2.4%—just 0.1% month-on-month—while Washington and Beijing moved toward a tentative tariff rollback.
The softer inflation print and easing trade tension strengthen expectations that the Federal Reserve could shift to rate cuts before year-end. Historically, lower rates and improved liquidity boost Bitcoin, and traders reacted by bidding the benchmark cryptocurrency as high as USD 110,300. Key resistance sits near the USD 110,000–112,000 zone, with interim support seen around USD 67,000–70,000. Ethereum followed with modest gains. Market participants will focus on next week’s Fed meeting and any formal confirmation of the U.S.–China tariff accord. A dovish Fed statement or signed deal could attract fresh retail inflows and extend Bitcoin’s macro-driven rally.
Bullish
Cooling inflation, the prospect of a U.S.–China tariff rollback and growing expectations of Federal Reserve rate cuts all increase liquidity and risk appetite, historically lifting Bitcoin prices. The cryptocurrency has already reacted positively, jumping from USD 69,500 to above USD 110,000. While resistance remains near USD 110,000–112,000, the macro backdrop now favors further upside unless inflation or trade tensions re-escalate.