Crypto News: Crypto Prices Eye US CPI This Week Amid Trump’s 100 bps Fed Rate Cut Call

Key Insights:

• Crypto news: Focus on US CPI inflation data as traders look for insights on market direction in the coming weeks.
• Economists’ forecasts revealed an increase in headline CPI and PPI inflation in May.
• President Donald Trump called the US Federal Reserve to go with a 1% rate cut similar to other central banks.
• Bitcoin price rebounded and broke resistance level to jump above $107,500 ahead of key US-China trade talks.

The crypto market awaits the US Consumer Price Index (CPI) inflation data this week that could push the U.S. Federal Reserve (Fed) to announce rate cuts earlier this year. It is considered an important trigger for Bitcoin price rally as analysts remain hopeful of a recovery.

At the time of writing, BTC price jumped more than 2% in the last 24 hours to $107,500 as the US and China representatives started trade talks in London, England.

Crypto News: Crypto Prices Await US CPI and PPI Data

The crypto market is awaiting the upcoming US inflation data for cues on the potential future moves of the US Federal Reserve.

The US Department of Labor Statistics to release CPI inflation data for May on Wednesday. As per forecasts, the headline CPI inflation increased to 2.5% from 2.3% in April, a rise after decreasing for three consecutive months. Whereas, the core CPI was expected to come in higher at 2.9%, from 2.8% in the previous month.

The month-over-month CPI data was forecasted to increase 0.2%, the same as last month. Moreover, the core CPI monthly was expected to come in at 0.3%, from a 0.2% increase in the previous month.

Meanwhile, the annual Producer Price Index (PPI) is expected at 2.6%, an increase from 2.4% in April. The core PPI was estimated to drop to 3% from 3.1% previously. The monthly PPI and core PPI were forecasted to increase 0.2% from -0.5% and 0.3% from -0.4%, respectively.

The Fed relies on US jobs and inflation data to decide interest rate changes. The latest jobs data were slightly stronger than expected, with the unemployment rate staying at 4.2%. The same affected not just Tradition finance and news but also crypto news.

POTUS Calls for 100 Bps Rate Cuts

US President Donald Trump criticized the monetary policy of the US central bank, calling for a 100 bps interest rate cut. The move comes after the ECB cut rates by another 25 bps to 2%, with inflation falling below its target, sparking discussions in the crypto market.

“Too Late’ at the Fed is a disaster! Europe has had 10 rate cuts, we have had none. Despite him, our Country is doing great. Go for a full point, Rocket Fuel!” Trump posted on his Truth Social account.

At the time of writing, the CME FedWatch showed a 99.9% probability of no change in rates by the Fed in the June meeting.

However, there’s a 54.5% probability of a 25 bps rate cut in September. Also, a 36% chance of no change in interest rates. Besides, the hawkish stance at the latest FOMC minutes has further fueled speculations.

Crypto News Update: Bitcoin and Crypto Prices Stabilizes Ahead of Key Macro Events

Bitcoin price jumped 2% in the past 24 hours, with the price trading near $107,500 at the time of writing. The 24-hour low and high were $105,075.33 and $107,504, respectively. Furthermore, the trading volume increased by 21% in the last 24 hours, indicating a rise in interest among traders.

Analyst Ali Martinez predicted that BTC broke the resistance level at $106,600. He predicted Bitcoin could reach $108,300 or even $110,000 amid buying pressure as we can see in current crypto news narrative.

The US Dollar Index (DXY) edged lower to around 99 on Monday. Whereas, the US 10-year Treasury yield held steady around 4.5%, maintaining its recent advance as investors geared up for a week filled with economic data and trade developments. Ideally, Bitcoin moves in the opposite direction to the DXY and 10-Yr Treasury yield.