Key points:
- Bitcoin hits its anticipated $107,000 low before heading higher as US inflation data boosts bulls.
- US dollar strength suffers as inflation continues to slow beyond expectations.
- BTC price expectations include new all-time highs before the end of the month.
Bitcoin (BTC) bounced near $107,000 at the June 12 Wall Street open as slowing US inflation data punished the dollar.
US PPI beat sparks Bitcoin relief bounce
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD bucking a day of downside after reaching $106,600 on Bitstamp.
Fresh strength followed promising numbers from the US Producer Price Index (PPI), which came in below expectations to show the lowest increase since September 2024.
That trend itself repeated results from the Consumer Price Index (CPI) the day prior — a double tailwind for crypto and risk assets.
As Cointelegraph reported, cooling inflation notionally gives the Federal Reserve room to lower interest rates faster and sooner, something which would aid liquidity inflows to crypto and risk assets.
The Fed has remained hawkish in its stance on policy for 2025, however, despite protests from US President Donald Trump.
A look at the latest data from CME Group’s FedWatch Tool now shows markets pricing in the next Fed rate cut at its September meeting. The June 18 meeting of the Federal Open Market Committee (FOMC) remains tipped to offer no change in rates.
As a result of the inflation numbers, US dollar strength took a fresh hit, with the US dollar index (DXY) dropping to its lowest levels since March 2022.
Commenting on the current mood, trading firm QCP Capital remained focused on the US-China trade deal while concluding that the trend overall favored crypto bulls.
“Despite a modest pullback, macro conditions remain constructive for further institutional engagement and capital deployment into digital assets,” it summarized in its latest bulletin sent to Telegram channel subscribers.
$116,000 June BTC price target in play
Bitcoin traders were meanwhile uncertain about short-term BTC price action after BTC/USD fell nearly $4,000 in 24 hours.
Related: Bitcoin must avoid sub-$100K wick as traders digest 55% China tariffs
“At this point I’m fairly certain that if price breaks either the current monthly high or low, that it will keep trending that direction for the rest of June (and possible beyond),” popular trader Daan Crypto Trades predicted in part of his latest analysis on X.
“Eyes on those levels.”
Previously, market participants had anticipated a drop to $107,000, with notorious Hyperliquid trader James Wynn forecasting the day’s bounce zone.
“As of now, structure is still bullish. Bitcoin rejected local supply & is now pushing into demand around 106-107K,” fellow trader Killa continued in his own X post.
“This is quite a important level in terms of market structure, if we are unable to hold, we likely fill the CME gap below.”
Killa added that he expected new all-time highs of up to $116,000 to come before the end of June.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
