Kava (kava) 
Bitcoin and other altcoin prices increased after the US released encouraging June inflation data. BTC surged to over $59,000 on Thursday, up from last week’s low of $53,700. Other tokens like Mantra (OM), Notcoin (NOT), AAVE (AAVE), and JasmyCoin (JASMY) saw double-digit gains.
US Inflation Data
Data from the Bureau of Labor Statistics (BLS) indicated that the headline consumer price index (CPI) dropped from 0.0% to -0.1% in June, lower than the median estimate of 0.1%. The headline CPI fell from 3.3% to 3.0%, also below the median estimate of 3.1%. The core CPI decreased from 0.2% to 0.1% and from 3.4% to 3.3%.
These figures suggest inflation is moving in the right direction, potentially influencing the Federal Reserve’s next steps. Jerome Powell mentioned that the bank might consider cutting rates if inflation continues to decline.
Most economists anticipate the Federal Reserve will deliver its first interest rate cut in the September meeting. Additionally, high-frequency data shows that the manufacturing and non-manufacturing PMIs dropped below 50 in June.
US CPI inflation came in lower than consensus forecasts across the board. Monthly headline inflation for June was -0.1 (the consensus forecast was 0.1), bringing the annual measure down to 3.0% (3.1%). Core came in at 0.1% (0.2%) and 3.3% (3.4%).
Another BLS report revealed that the unemployment rate rose to 4.1% while wage growth slowed.
Impact on Bitcoin, Mantra, and Notcoin
Cryptocurrencies generally perform well when the Fed adopts a dovish stance, as seen earlier this year when Bitcoin hit a record high amid potential rate cuts. Interest rate cuts could push investors to shift from safe money market funds to riskier assets like Bitcoin, Mantra, and Notcoin. Other altcoins like Ondo Finance, Near Protocol, and Pepe might also see gains.
These cryptocurrencies could join other assets like stocks in a strong rally, with the Nasdaq 100, S&P 500, and Dow Jones all reaching record highs. However, the crypto industry faces risks that could impact prices. For instance, Bitcoin’s available supply is increasing as the German government continues to offload its holdings. Miner capitulation persists, and Mt. Gox distributions remain ongoing.
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