The much-anticipated U.S. Consumer Price Index (CPI) data has just been released, and the numbers are reigniting the debate in the markets!
Official numbers (June 2025):
Annual Consumer Price Index (CPI): 2.7%
Core Consumer Price Index (Core CPI) Annual: 2.9%
We saw immediate market fluctuations, as the price of Bitcoin dropped from its recent peaks right after the report was released. This raises the most important question that our discussion never ends:
Is high inflation positive or negative for cryptocurrencies now?
There are two main conflicting viewpoints:
Inflation Hedge Camp: Believes that continued inflation above the Fed's target (2%) enhances Bitcoin's value as a store of value and 'digital gold', especially with the erosion of the dollar's purchasing power.
Interest Rate Fear Camp: Believes that these numbers may push the U.S. Federal Reserve to keep interest rates high for a longer period to combat inflation, making high-risk assets like cryptocurrencies less attractive to investors.
It’s your turn to join the discussion!
What is your analysis of the initial market reaction? Was it expected?
Do you think the narrative of 'Bitcoin as a hedge against inflation' is still strong, or has the impact of interest rate policies become the stronger driver of the market?
How will this data affect the movement of Bitcoin and altcoins in the short and medium term? Is it a buying opportunity or a call for caution?
Share your predictions and the price levels you are watching in the comments! 👇
