Analyst: US CPI at 4.2% adds downward pressure on BTC

Following the announcement that the U.S. Consumer Price Index (CPI) for May rose 4.2% year-over-year, market analysis suggests Bitcoin (BTC) could face additional pressure. Markus Thielen, founder of 10x Research, commented that this CPI reading was not enough to alleviate inflation concerns and is unlikely to be seen as a signal for institutional investors to increase their BTC exposure. He projected that geopolitical risks involving Iran and rising oil prices could amplify inflationary pressures, increasing the likelihood of BTC's price falling below $60,000 in the short term. However, Tim Sun, a senior researcher at HashKey Group, assessed that an actual interest rate hike within the year is unlikely, despite growing market expectations for one. He analyzed that risk-on sentiment could recover once slowing inflation, expectations of a rate cut, and improved liquidity are confirmed.