Bitcoin Tops $62,000 After U.S. May CPI Matches Forecast

Bitcoin climbed above $62,000 on the day the U.S. consumer price index for May matched forecasts at 4.2% year-on-year. The price move narrowed immediate downside risk and produced a short-term rebound in the largest cryptocurrency.

The CPI showed headline inflation at 4.2% in May and core CPI, which excludes food and energy, at 2.9%, compared with April’s 2.8%. Market participants had been positioned for a hotter reading that could have revived concern about additional Federal Reserve tightening.

Ole Hansen, head of commodity strategy at Saxo Bank, described the report as broadly in line with expectations and noted persistent inflation risks related to higher energy costs and the prospect of interest rates staying higher for longer.

Bitcoin entered the release after several weeks of losses. Analysis from market researchers found the token had fallen about $21,000 over the prior 30 days, leaving the $60,000 area as a key support level. Demand for spot Bitcoin exchange-traded funds had cooled, and rising U.S. Treasury yields made non-yielding assets less attractive to some investors.

Market data showed a recent liquidation wave erased more than $10 billion of bullish long positions, reducing speculative depth. Options market measures indicated puts were trading with a higher implied volatility premium than calls, reflecting greater demand for downside protection.

U.S. Treasury yields rose ahead of the CPI release as traders reassessed the timing and likelihood of rate cuts. Bitcoin’s correlation with broader risk assets has increased, making yields and liquidity conditions important factors in its price moves.

Traders identified resistance near $64,000 as the next level to test. Market participants will watch whether gains above $62,000 persist beyond the immediate post-report rebound or whether the $60,000 support is retested.

The May CPI reading left headline inflation above the Federal Reserve’s 2% goal. Incoming inflation data and central bank policy remain key items on market calendars and are expected to influence trading activity in cryptocurrencies and other risk assets.