The US June CPI rose by 2.7%, inflation upward triggered a short-term rebound in Bitcoin.

Inflation rises again, market sentiment turns cautious The Consumer Price Index (CPI) in the United States rose 2.7% year-on-year in June, marking the second consecutive month of increase, highlighting that inflationary pressures remain. The rise in food, transportation, and used car prices has been the main driver of this CPI rebound. Although energy prices continue to decline, the rate of decrease has narrowed, and the downward trend in gasoline and fuel prices has weakened.

At the same time, the core CPI has also risen slightly year-on-year, further strengthening the market's concerns about "inflation stickiness." As a result, the dollar index rose 2.1% in July, reaching 98.5, indicating a preference for funds returning to safe-haven assets.

Bitcoin's Reaction to CPI Data: Slight Increase of Nearly 2% After the CPI data was released, Bitcoin (BTC) saw a short-term rebound, rising from $11,573 to $11,899, an increase of 1.91%, demonstrating investors' positive interpretation of easing inflation and market resilience.

On-chain data supports this optimism. According to IntoTheBlock, approximately 97.14% of BTC holders are currently "in profit," with only 0.57% of addresses "in loss." This indicates that market selling pressure is minimal and the chips are in a healthy distribution.

At the same time, IntoTheBlock's "Long vs. Short Power Indicator" shows: 111 bulls vs. 110 bears. Although the gap is slight, it still indicates that buying pressure has a slight edge, and the market maintains a certain upward expectation.

Comparison of the Bitcoin market before and after the release of May CPI In contrast, before the release of the CPI data in May, the entire cryptocurrency market was in a wait-and-see and uncertain state. CryptoQuant analysts pointed out that investors showed a clear "wait-and-see" attitude before the key inflation data was released.

The volatility of Bitcoin (ATR) fell below 200 points at that time, indicating a slowdown in short-term trading activity. However, from May to June, despite persistent inflation, the crypto market showed increasingly strong "resilience signals," with Bitcoin no longer seen solely as a high-risk asset but gradually being accepted by the market as a stress-resistant asset in the financial system.

Conclusion: Despite the rising inflation data in June, the Bitcoin market has shown strong confidence and resilience. Most investors are in profit from holding, and buying interest remains upward, along with volatility still at a medium to low level, indicating that BTC may have further room for growth. Monitoring the path of inflation and the direction of macro policies will be key to the evolution of future market trends.