Bitcoin holds steady as May CPI inflation peaks, altcoins slip
In brief
- Bitcoin climbed 1.9% to $62,600 on Thursday, holding its 200-week average despite weekly decline.
- May headline inflation rose 0.5% monthly and 4.2% annually—fastest since April 2023, driven by energy costs.
- Core inflation rose 0.2% monthly, below 0.3% forecast, and 2.9% annually.
- Ether fell 6.5% to $1,651; Solana, XRP, and Dogecoin each lost 7% or more for the week.
- Federal Reserve expected to hold rates steady at June 17 meeting.
Bitcoin's Resilience, Alts' Weakness
Bitcoin rose approximately 1.9% over 24 hours to roughly $62,600 on Thursday, leading majors higher. Over the past seven days, though, BTC proved the exception to the broader selloff—it's down less than 1% on the week, holding its 200-week average.
The story flipped for altcoins. Ether slumped 6.5% to roughly $1,651 over the week. Solana dropped 7.4% to around $65, XRP fell 7.5% near $1.12, and Dogecoin lost 7% for the week. BNB held up better at a 2.1% weekly loss.
Energy Drove the Headline Surprise
The inflation data painted a nuanced picture. Energy accounted for more than 60% of the monthly inflation increase, climbing 3.9% on the month as oil rose on the Iran conflict. Strip out food and energy, and the picture softened. Core inflation rose just 0.2% on the month, below the 0.3% forecast, and 2.9% over the year.
The divergence left traders parsing what comes next. "The hot headline gives hawks cover to stay restrictive, while the soft core gives doves room to argue the pressure is narrow and energy-driven," market analysts noted. Traders now await the Federal Reserve's June 17 meeting, where markets expect no change to rates.
