Inflation Is Decreasing In The United States, Bitcoin Is Benefiting From It

The latest New York Fed survey brings a smile back to investors. While Donald Trump announces a new round of tariffs, one-year inflation expectations fall to 3%. This news is seen as a green light by the crypto market. Proof of this: the bitcoin price is gradually increasing.

Bitcoin flirts with $109,000 thanks to inflation pullback

Good news for the crypto market! Fears related to inflation are easing in the United States . According to the study published Tuesday by the New York Fed, Americans expect price increases to be limited to 3% within one year (compared to 3.2% the previous month).

This level is lower than projections and close to pre-Trump standards. This immediately impacted the bitcoin price. It shows a slight increase of 0.74% in the last 24 hours. Currently, BTC is trading between $107,499 and $109,198. Its price remains firmly above $108,000.

That’s not all! Over a 7-day period, bitcoin also gained 2.41%. According to CoinMarketCap, its market capitalization reached $2.16 trillion.

Trump revives tariffs, but markets still bet on bitcoin

On Monday, Donald Trump published official copies of his tariff increase letters. In principle, the new taxes will take effect on August 1st. That said, financial markets reacted better than expected. Inflation measured by the CPI index was actually 2.4% in May. It is thus below the expected 2.6% threshold.

Result: despite Trump’s announcement, investors favor bitcoin as a safe haven. Trading volumes have remained stable at $45.2 billion, which is proof. Even futures contracts hardly moved. This indicates controlled volatility!

Macro signals in the United States therefore appear encouraging for bitcoin, even amid political uncertainty. If inflation continues to decrease, the cryptocurrency could reach a new milestone. Story to follow…