Inflation: In Line, Core: A Bit Cool — $BTC Sighs, Shrugs, Bounces 📈

U.S. consumer prices rose 0.5% month-over-month in May, putting annual inflation at 4.2% and in line with Wall Street forecasts, according to the Bureau of Labor Statistics. The figure is up from 3.8% in April, marking the third straight month of accelerating annual inflation. Core CPI, which strips out food and energy, came in at 0.2% for the month and 2.9% year-over-year, slightly below the 0.3% monthly reading economists had expected.

Energy was the dominant driver, with the energy index climbing 3.9% in May and accounting for more than 60% of the overall CPI increase. Gasoline prices alone rose 7.0% on the month and are up 40.5% over the past 12 months. Shelter inflation remained elevated at 0.3% in May and 3.4% annually, while categories including motor vehicle insurance, household furnishings, new vehicles, and prescription drugs all declined.

Bitcoin recovered from an intraday dip below $61,000 to trade at $61,783, later edging up to roughly $62,000, a 0.3% increase over the past 24 hours, per CoinGecko. The move left $BTC 1.32% lower on the 24-hour chart. Ethereum climbed to $1,650, XRP held at $1.12, and Solana traded at $65, resuming a rebound from Friday's selloff that coincided with strong jobs numbers, even as XRP remained 1.6% lower on the day.

Market participants said the in-line print did little to shift the policy debate. "For Bitcoin, an in-line print is unlikely to be a clean catalyst," Iggy Ioppe, chief investment officer at trading infrastructure platform Theo, told Decrypt. "It keeps liquidity expectations capped and risk assets trading more on positioning than on a fresh dovish impulse." Traders expect the Federal Reserve to hold its benchmark rate at 3.5% to 3.75% through 2026 under Chair Kevin Warsh, with at least one rate hike priced in before year-end on CME Watch.

Separately, Nasdaq-listed Fold Holdings said it has eliminated all of its secured debt and freed up $25 million in fresh capital by selling roughly $45 million worth of Bitcoin at an average price of about $71,000 per coin. The Phoenix-based fintech, which lets consumers earn and spend Bitcoin through everyday financial products, used $20 million of the proceeds to retire secured debt, sending its share price more than doubling after the opening bell.