Bitcoin Slips 5.4% as US Inflation Hits 2.7%

Bitcoin has experienced notable volatility recently, influenced by rising US inflation data and geopolitical tariff tensions. The June US Consumer Price Index showed a 2.7% year-over-year increase, the highest since February, signaling persistent inflation and reducing the likelihood of a Federal Reserve rate cut in July, though markets still price in a potential September cut. Bitcoin surged to new highs above $123,000 amid strong institutional demand and bullish catalysts, including pending US legislation aimed at stablecoin regulation and clarifying jurisdiction between financial regulators, which has bolstered investor confidence. However, tariff threats from President Trump against the EU and Mexico have introduced macroeconomic uncertainty, causing temporary pullbacks in both Bitcoin and broader asset classes, while cryptocurrencies and precious metals have emerged as relative safe havens. Market sentiment remains mixed, with Bitcoin holding above $117,000 but facing resistance between $119,250 and $120,700, and upcoming US economic data releases poised to influence its next directional move. Overall, Bitcoin's trajectory reflects a complex interplay of inflation trends, regulatory developments, and geopolitical risks shaping investor behavior.