≈ $108,680 | ≈ $2,766 | BTC.D: 64.15% | ETH.D: 9.92% | +0.7% | +3.9% | +0.9% (early session)
Markets rallied early Wednesday after a cooler-than-expected U.S. inflation report. But by the end of the day, risk assets gave back most gains as concerns about interest rates and renewed Middle East tensions returned to the forefront.
Softer CPI Confirms Disinflation
The May inflation data delivered:
- Headline MoM: 0.1% (vs. 0.2% expected)
- MoM: 0.1% (vs. 0.3%)
- YoY: 2.4% (vs. 2.5%)
The print immediately sent Treasury yields lower and risk assets higher. briefly climbed over $110K. Ethereum moved closer to $2,800. But the rally proved fragile. Despite the bullish data, broader macro fears crept back in.
Markets Want a Pivot, the Fed Isn’t Ready
Futures now imply a ~70% chance of a by September, but policymakers haven’t signaled any rush. Jerome Powell recently said inflation is moving in the right direction but remains “too high.”
This disconnect between what markets want and what the Fed is ready to do is fueling volatility, and creating short-lived rallies.
Middle East Tensions Shake Risk Appetite
Just as risk assets were gaining steam, geopolitical concerns returned.
- The U.S. began evacuating staff from embassies in Iraq, Bahrain, and Kuwait.
- Reports pointed to increased military alertness in Israel amid tensions with Iran.
- Oil jumped nearly 5% on the day.
- Gold pushed back above $3,350.
- Equities lost momentum, and Bitcoin slipped below $109K by session end.
Behind the Scenes: Crypto Market Signals Still Bullish
Despite the late day pullback, several key metrics show that bullish positioning remains intact, though somewhat cautious.
Dominance Ratios
- Bitcoin Dominance (BTC.D): 64.15%
- Ethereum Dominance (ETH.D): 9.92%
BTC dominance confirms Bitcoin’s leadership in this cycle. However, ETH holding near 10% dominance shows that large-cap altcoins are still attracting serious capital. This balance suggests a market where altcoin rallies remain possible alongside BTC strength.
Funding Rates & Open Interest
- BTC OI-Weighted Funding Rate: 0.0083%
- ETH OI-Weighted Funding Rate: 0.0095%
- ETH Volume-Weighted Funding Rate: 0.0092%
These positive rates show that most leveraged traders are betting long paying a premium to hold their positions. This indicates continued bullish bias, but not at dangerously overheated levels.
Open interest remains elevated near yearly highs, further highlighting active speculative participation.
Liquidation Flows (24h)
- Total Liquidated: $334.28M
- Longs Rekt: $246.09M
- Shorts Rekt: $88.19M
First, CPI optimism squeezed shorts. Then, as fear returned, long positions were wiped out. This is a classic case of volatility punishing both sides in a highly leveraged environment.
Will PPI Be the Next Catalyst?
Wednesday’s CPI showed inflation is slowing, but data alone wasn’t enough to sustain risk-on flows. Now, the focus shifts to the Producer Price Index () report due later today.
If PPI confirms CPI’s signal, another rally could follow. If not, traders may stay cautious heading into the weekend.
BTC Price Reaction to CPI – June 12, 2025
Final Takeaway
The market got the data it wanted. But fear, not fundamentals, dictated the close.
- Inflation is easing.
- Funding remains positive.
- Altcoins are holding ground.
But the Fed is silent, and global risk is rising.
If today’s PPI print confirms the disinflation trend, expect another surge. If not, it’s back to range-bound volatility.
Until then, trade light, hedge smart, and stay ready.
Disclosure: This content is for educational purposes only and does not constitute investment advice. Always DYOR, Do Your Own Research.
Cryptocurrencies are subject to high market risk and vulnerability, despite their high growth potential. Users are strongly advised to conduct thorough research and invest at their own risk.