The crypto saw modest bidding on Thursday after Wednesday’s inflation report showed underlying price pressures remained contained. Bitcoin rose about 1.9% over 24 hours to around $62,600, leading the majors, according to CoinDesk data.
Headline inflation rose 0.5% on the month and 4.2% on the year, the fastest annual pace since April 2023, but energy did most of the work, climbing 3.9% on the month and accounting for more than 60% of the rise as oil rose following the Iran conflict.
Core inflation, which excludes food and energy and is the gauge the Federal Reserve relies on, rose just 0.2% for the month, below the 0.3% expected, and 2.9% for the year.
The rebound is superficial and concentrated on Bitcoin. BTC is down less than 1% over the past seven days, maintaining its 200-week average, while the rest of the major tokens remain deep in the red this week. Ether is down about 6.5% to around $1,651, XRP is down 7.5% to near $1.12, Solana is down 7.4% to around $65, and dogecoin is down 7%. BNB held up better with a weekly loss of 2.1%.
Traders are now awaiting the Fed meeting on June 17, during which markets do not expect any change in rates. The hot title gives the hawks cover to stay restrictive, while the soft core gives the doves the ability to assert that the pressure is tight and energy driven.
Another widely cited catalyst is Elon Musk’s satellite, rocket and AI company SpaceX’s public offering, which is priced later Thursday and is expected to begin trading Friday at a valuation of $1.8 trillion.
The company’s shares are already four times oversubscribed, with some singular entities offering as much as $10 billion for the shares, according to Bloomberg.
