Key Takeaways
Core inflation edged higher, but not enough to shake crypto bulls as Bitcoin saw a quick rebound, with more bulls than bears in the market.
U.S. inflation picked up for the second straight month in June 2025, with the Consumer Price Index (CPI) reaching 2.7%, the highest since February.
The increase, driven by rising costs in food, transportation, and used vehicles, signals that price pressures are proving more persistent than expected.
Although energy prices continued to decline, the pace slowed sharply, with gasoline and fuel oil still falling but less steeply than before.
Core inflation also edged higher year-over-year, reinforcing concerns that inflation remains sticky. In response, markets turned cautious, with the U.S. Dollar Index climbing 2.1% to reach 98.5 in July.
How did Bitcoin react to June’s CPI data?
Bitcoin [BTC] saw a notable uptick following the release of U.S. inflation data, surging from $115.73 to $118.99, marking a 1.91% increase over the past 24 hours, as per CoinMarketCap.
This price movement reflects growing optimism among investors, likely fueled by cooling inflation and a softer-than-expected core CPI.
Supporting this positive market sentiment, data from IntoTheBlock revealed that a substantial 97.14% of Bitcoin holders were “in the money,” indicating their holdings were currently valued above their initial purchase price.
In contrast, only 0.57% of holders were “out of the money,” highlighting minimal downside pressure in the market.
Source: IntoTheBlock
Adding to this bullish narrative, the Bulls and Bears indicator by IntoTheBlock recorded a slight dominance of bulls — 111 versus 110 bears, suggesting a narrow but notable tilt toward buying interest.
Source: IntoTheBlock
Together, these indicators reflect a cautiously optimistic market outlook, hinting at the potential for continued upward momentum in Bitcoin’s price action.
Bitcoin when May’s CPI was about to be released
Back when the May CPI data was about to be released, the broader crypto market, including Bitcoin, was experiencing a period of stagnation and uncertainty.
CryptoQuant analysts also observed that investors took a wait-and-watch approach, holding back from aggressive moves amid speculation around upcoming inflation data.
This caution showed in Bitcoin’s volatility, which dropped to 200 ATR, signaling a quieter trading environment.
Still, despite rising inflation, the crypto market now shows growing confidence in Bitcoin’s ability to handle pressure, treating it as more than just a risky asset and increasingly as a serious player in the financial system.
