Bitcoin surged above $69,000 following a slight decline in the latest US Consumer Price Index (CPI) for May, which exceeded many analysts' expectations.

According to Charlie Bilello, Chief Market Strategist at Creative Planning, the US CPI dropped to 3.27% year-on-year in May from 3.36% in April. Core CPI, excluding Food and Energy, also decreased to 3.41% from 3.62% the previous month, marking its lowest level since April 2021. Bilello noted a significant reduction from the peak of 9.1% in June 2022 to the current 3.3%, driven by declines in used cars, gas utilities, apparel, food, gasoline, medical care, fuel oil, food away from home, shelter, and electricity.

Bitcoin's price reacted positively to the favorable CPI figures, climbing over 2% within an hour to reach $69,377 at the time of reporting. Mike Alfred, board member at IREN Energy, highlighted that Bitcoin's movement suggests it anticipates CPI and Federal Reserve actions won't be major bearish catalysts, showcasing its role as a sophisticated global macro asset that anticipates market movements in advance.

Attention in the market has now shifted to the US Federal Reserve's upcoming decision on interest rates, expected later today. Jesse Cohen, Global Markets Analyst at Investing.com, speculated that the May CPI report might embolden the Fed to consider laying the groundwork for future rate hikes, though he believes several more months of soft inflation data may be necessary before a rate cut becomes plausible.