In June, the US CPI decreased by 0.4% month-on-month, and BTC rose to $64,900

In June, the U.S. CPI fell by 0.4% month-on-month, the largest monthly decline since April 2020; the annual rate dropped from 4.2% in May to 3.5%, lower than the expected 3.8%. Core CPI decreased to 2.6%, below expectations, remaining flat month-on-month.

Major cryptocurrencies rose after the data was released, with BTC increasing from about $62,000 to $64,900, and ETH rising 7% to $1,884, with approximately $300 million in short positions being liquidated. Federal Reserve Chairman Kevin Warsh testified before Congress that the Fed has a "zero tolerance" for persistently high inflation; if the policy is correct, the inflation rise over the past five years will become a thing of the past. When asked about the CPI data, he disagreed with the assessment of "mission accomplished" and did not provide guidance on the next policy steps.