US consumers expect inflation to drop to 3% in the next year according to the New York Fed survey, Bitcoin reacts positively with a 0.74% increase in 24 hours.
The June Consumer Expectations Survey of the Federal Reserve Bank of New York released on Tuesday shows Americans expect inflation to be around 3% in the next year, 0.2 percentage points lower than the May survey expectations. Following this information, Bitcoin price slightly increased and fluctuated around $108,000 during the morning, indicating a positive market sentiment towards signs of potential inflation cooling.
The 3% expectation shows US consumer inflation sentiment has returned to levels before President Donald Trump's inauguration, a period not yet affected by tariff policies. This is particularly important considering the Consumer Price Index (CPI) in May was 2.4%, lower than expected but still higher than the Federal Reserve's 2% target.
President Trump's controversial tariff strategy was strongly criticized by economists due to concerns about potential price surges when launching a global trade war. Just yesterday, Trump published images of tax notification letters sent to many countries on the Truth Social platform, specifying new import tariffs will take effect from August 1.
Bitcoin Market Maintains Stable Growth Momentum
Bitcoin price was recorded at $108,788.74 at the time of reporting, reflecting a modest 0.74% increase in 24 hours and a more significant 2.41% increase over the past week according to CoinMarketCap data. Price fluctuations during the day ranged from $107,499.56 to $109,198.97, indicating a relatively stable market with a narrow trading range.
Trading volume remained almost flat with a slight 0.50% increase, reaching $45.20 billion, while Bitcoin's market capitalization increased 0.74% to $2.16 trillion. However, market dominance slightly decreased by 0.01% to 65.09%, showing a relatively balanced capital allocation between Bitcoin and other altcoins.
The derivatives market also showed positive signals as the total open Bitcoin futures contracts only slightly decreased by 0.11% to $73.97 billion. In the past 24 hours, the total liquidated position value was $36.20 million, with long positions losing around $20.23 million and short positions liquidated at $15.97 million, reflecting a relatively balanced position between long and short market positions.
