Bitcoin (BTC) price remains flat despite CPI falling below forecasts, expectations for a rate cut increase

As the U.S. Consumer Price Index (CPI) fell below forecasts, expectations for a rate cut by the U.S. Federal Reserve (Fed) increased, but the virtual asset market remains flat.

As U.S. Consumer Price Index (CPI) figures came in lower than expected, anticipations for a rate reduction by the U.S. Federal Reserve (Fed) heightened, yet the virtual asset market displayed a muted response.

According to CoinMarketCap, Bitcoin is currently trading at $83,470, showing a slight increase of 0.78% over the past 24 hours.

Following the release of CPI data, Bitcoin briefly touched a peak of $84,358.58, before undergoing a slight adjustment.

Generally, altcoins also exhibited a flat performance. Ethereum, which recently fell below the $2,000 level, is trading with a decrease of 0.75% at $1,899.42.

R.P.I is showing an increase of 2.23% at $2.23, while Solana has decreased by 0.01% to $125.27.

On this day, the market focused on the U.S. CPI figures, which came in lower than economists' forecasts.

As reported by the U.S. Labor Department, the headline CPI displayed a rise of 2.8% year-on-year, falling short of the 2.9% increase anticipated by a poll of economists, and compared to a 3.3% rise in April.

Excluding the volatile food and energy components, core CPI increased by 3.1%, remaining below economists' predictions of a 3.2% rise and slowing from a 3.6% increase in the previous month.

Recently, the market has witnessed a substantial increase in fear over inflation due to the impact of U.S. President Donald Trump's successive tariff policies. However, with the CPI figures coming in lower than expected and concerns about inflation easing, the stock market showed gains.

The Dow Jones Industrial Average closed with an increase of 367.98 points, or 1.3%, to reach 28,648.65. The S&P 500 Index also rose by 1.14%, closing at 3,205.98.

Anticipations for a rate cut by the Fed have also risen. According to the Chicago Mercantile Exchange (CME) FedWatch, the probability of the Fed reducing interest rates at the June Federal Open Market Committee (FOMC) meeting increased from 55.0% to 68.8% in a single day.

However, some analysts believe that it will be difficult for the market to recover immediately due to the widespread fear that has persisted in the virtual ground market for a considerable period.

"One material is not enough to resolve and revive market fears that have lasted for weeks. The most important issue is President Trump's tariff policy, which is preventing inflation and smashing the asset market," said Yang Yu-wei, chief economist at Bmining, in an interview with CoinDesk.

He further explained that this situation makes it challenging for the Fed to make a decision. While high inflation would make it difficult to cut interest rates, there are signs of an economic slowdown, such as an increase in the unemployment rate, which could push the Fed to lower interest rates.