$BTC U.S. CPI data is bullish, and Bitcoin briefly broke through $110,000.

Last night, after the release of the U.S. May Consumer Price Index (CPI) data, Bitcoin ($BTC) briefly broke through $110,000, but the upward momentum did not last long, and it has fallen back to around $108,000 this morning.

According to (Cointelegraph), the U.S. May CPI year-on-year growth rate is 2.4%, lower than the market expectation of 2.5%, but up from 2.3% in April to 2.4%, marking the first increase in four months; while core CPI is at 2.8%, also better than the expected 2.9%. After the data was released, the U.S. Dollar Index (DXY) plummeted to a multi-month low of 98.5, and the market quickly adjusted its expectations for the Federal Reserve's interest rate policy.

Although the CPI data performed well, the probability of a rate cut in next week's Federal Reserve interest rate decision (FOMC) remains low, with the CME FedWatch showing a less than 1% chance of a rate cut, but there is a 60% chance of a cut in the September meeting.

(Cointelegraph) analyzes that if the Producer Price Index (PPI) data released on Thursday is lower than expected, it may further boost Bitcoin's price to challenge the $115,000 high. The market expects the PPI month-on-month growth rate to be 0.2%, and the core PPI to be 0.3%.