The cryptocurrency markets kicked off the week with strong momentum following key inflation data from the United States. Bitcoin rallied past $110,000, reaching new all-time highs amid renewed investor optimism.
In May, the U.S. Consumer Price Index (CPI) rose by just 0.1% month-over-month and 2.4% annually—below the expected 2.5%. Core CPI, excluding food and energy, also came in at a softer 2.8%. Declines in energy, vehicles, and apparel prices contributed to the subdued inflation print, helping to ease concerns over runaway inflation.
Pressure on the Fed to Cut Rates Grows
This weaker-than-expected inflation reading reignited speculation that the Federal Reserve could cut interest rates in the near future. President Donald Trump and Vice President JD Vance publicly urged the Fed to take action and lower rates, calling the current monetary stance overly restrictive.
The dovish outlook and easing inflation boosted risk appetite across markets, pushing Bitcoin above the $110,000 mark. Many crypto investors see this macro backdrop as a potential catalyst for the next bullish cycle.
Moreover, with real wages rising and inflation pressures easing, digital assets are increasingly seen as attractive alternatives to traditional investments. Market participants are now closely watching upcoming Fed comments and macroeconomic data for further confirmation of a rate cut trajectory.
Bitcoin Surpasses $110,000
Bitcoin’s breakout not only reflects favorable economic conditions but also growing investor confidence and positive sentiment in digital asset markets.

If inflation remains tame and the Fed turns more accommodative, Bitcoin’s upward momentum may continue well into the summer.
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