On Thursday, the cryptocurrency market experienced a slight uptick following the release of Wednesday's inflation data, which indicated that underlying price pressures were largely stable. Bitcoin increased approximately 1.9% over a 24-hour period, reaching around $62,600, according to CoinDesk.
While overall inflation rose by 0.5% month-over-month and 4.2% year-over-year—the fastest annual increase since April 2023—much of this increase was driven by energy prices, which surged 3.9% monthly and contributed over 60% to the overall rise due to oil price increases linked to the Iran conflict.
In contrast, core inflation, which excludes food and energy prices and is a key focus for the Federal Reserve, only increased by 0.2% for the month, falling short of the 0.3% prediction, and registered a 2.9% increase year-over-year.
The recent gains appear limited, primarily benefiting bitcoin. Over the past week, BTC is down less than 1%, maintaining its 200-week average, while other major cryptocurrencies have seen significant declines. Ether has decreased by about 6.5% to around $1,651, XRP is down 7.5% near $1.12, Solana has dropped 7.4% to about $65, and dogecoin has fallen by 7%. BNB fared slightly better, with a weekly loss of 2.1%.
Market participants are now looking ahead to the Fed's meeting on June 17, where no changes to interest rates are anticipated. The uptick in headline inflation provides support for hawkish stances, while the subdued core inflation allows doves to argue that the pressures are limited and primarily energy-related.
Another factor influencing the market is the public offering of SpaceX, the satellite, rockets, and AI company owned by Elon Musk, which is set to price later on Thursday and is anticipated to begin trading on Friday at a valuation of $1.8 trillion.
According to Bloomberg, the shares are already four times oversubscribed, with some investors reportedly bidding as much as $10 billion for stock.