The crypto market is feeling the heat after June’s higher-than-expected CPI report sent Bitcoin prices tumbling. With inflation ticking up to 2.7% year-over-year (versus 2.6% expected), traders are quickly reassessing their Fed rate cut bets.

Key CPI Takeaways Moving Markets
🔥 June CPI: 2.7% YoY (up from May’s 2.4%)
🔥 Core CPI: 2.9% YoY (still above Fed’s 2% target)
🔥 Market reaction: BTC drops 3% within minutes
🔥 Fed rate cut odds: July chances fall below 15%
“Not a massive miss, but enough to keep the Fed guessing,” noted crypto analyst Kyledoops. “The market hates uncertainty.”
Why Bitcoin Reacts So Strongly
1️⃣ Risk asset status: Crypto moves with rate expectations
2️⃣ Dollar strength: Higher rates = stronger USD = BTC pressure
3️⃣ Liquidity outlook: Less chance of Fed easing hurts crypto
The Kobeissi Letter had warned earlier:
“Hot CPI could trigger a big selloff” – and that’s exactly what we’re seeing.
What’s Next for Bitcoin?
- Short-term: Volatility likely to continue
- Key support: $116K level critical to hold
- PPI data tomorrow: Another potential catalyst