The Inflation Chronicles: Bitcoin’s Dramatic Reaction to June’s CPI Hues

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This modest response to Bitcoin‘s price surge likely springs from traders who appear to have already priced in this grand impact—how quaintly predictable!

As foreboding clouds gathered over the CPI reveal, markets began to de-risk, with Bitcoin gracefully sliding from its luxurious $123,000 perch. Such melancholy was mirrored among altcoins, their high-fundamental flames flickering red on Crypto Bubbles. ☁️

Ah, the anticipation! Probably de-risking ahead of the CPI print.

— Kyledoops (@kyledoops) July 15, 2025

Meanwhile, analysts, those oh-so-astute observers, muse that geopolitical tensions between the fiery Israel and Iran may have fueled this inflationary symphony in June. This edifies our understanding of oil prices as Iran plays coy over the Strait of Hormuz.

Experts Attribute Blame to Trump’s Tariffs and the Israel-Iran War—How Original!

It seems the economists—brooding so effortlessly—saw this inflationary surge coming, ascribing the blame to none other than Trump’s whimsical trade policies. Like a sage, Fed chair Jerome Powell anticipated higher inflation readings over the sultry summer months, gleaned from businesses gallantly passing on Trump’s tariffs to the unsuspecting consumer populace.

“We expect to see over the summer some higher readings,” Powell intoned at a July 1 conference, sounding remarkably like a soothsayer of doom.

As firms grapple with dwindling options post-tariff era, past efforts included the noble pursuit of stocking up on inventories or absorbing costs like a sponge of despair. Yet, alas! Those days have passed, and consumers now face the delightful brunt. 🎭

“You’re still in an environment where businesses employed a veritable menagerie of strategies to outwit the duties,” Bloomberg sagely reported, quoting the ever-illuminating EY-Parthenon Chief Economist Gregory Daco.

In hindsight, the minutes from the Fed’s previous June policy gathering, now declassified, reinforce this dreadfully amusing prediction. The officials find themselves divided over the potential repercussions of tariffs on US inflation and the subsequent course of monetary policy—oh, the suspense!

Yet, ever in the shadow of the last, the next CPI print emerges as the shimmering jewel on this inflationary tiara, and today’s revelation is akin to a new act in this grand theater. 🎬

Before the June CPI unveiling, the CME FedWatch Tool, like a fortune-teller’s crystal ball, indicated a resounding 95.3% chance that the Fed would let interest rates remain fixed between 4.25% and 4.50%. Only a whimsical 4.7% chance hung over us like a fragile wisp of fate for a cut to 4.00% to 4.25%. But alas, fate seems to change.

CME chart

With bated breath, we await the next FOMC meeting scheduled for July 30—just over two weeks away, when fortunes may turn, or delightfully twist once more.

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2025-07-15 15:47