Crypto market analysis of June 14th, 2023:
Bitcoin continues to fluctuate sideways after the U.S. CPI reading for the month of May gave markets a mixed impression. Even though the headline CPI dropped to about two-year low at 4.0%, core CPI was stuck at 5.3%, only 0.1 percent point lower than the previous month. Bitcoin initially spiked and erased its weekend loss but the rise in U.S. treasury yields weighed on the price.
The Fed Fund futures market seems to be quite certain that the Fed will decide to pause their rate hikes at Wednesday’s FOMC meeting, however, given the persistently high core CPI and strong labor market, that expectation may be premature. Besides, there is also a chance that the Fed may raise their rates outlook for the end of 2023 from the last Economic Outlooks, so its difficult to say that June’s FOMC will yield significantly favorable results for bitcoin.