The cryptocurrency market experienced a significant rebound on June 12 following the release of U.S. Consumer Price Index (CPI) data for May, which showed no change. This news fueled optimism among investors, who had been anticipating promising inflation figures.

In May, the CPI remained flat, down from 0.3% in April, while the year-over-year (YoY) CPI dropped from 3.4% in April to 3.3% in May, surpassing predictions of no change. Core CPI YoY levels also saw a decline from 3.6% to 3.4%, marking the lowest rate since April 2021, compared to the estimated 3.5%.

In response to the positive data, the total crypto market capitalization surged by 3% to reach $2.65 trillion, according to CoinGecko. Bitcoin (BTC) broke a two-day downtrend with a 4% increase, surpassing $69,300, while Ethereum (ETH) rose by nearly 3% to $3,639.

Several other top 10 digital assets, including BNB, Solana (SOL), XRP, Dogecoin (DOGE), and Toncoin (TON), also saw modest gains on the day.

The softer inflation data was anticipated by crypto traders and investors ahead of the Federal Open Market Committee (FOMC) meeting. According to a report by QCP Capital, there was "aggressive buying" of June 13 calls and increased funding rates, signaling market positioning for an upward move.

QCP Capital analysts suggested that a neutral outcome from the FOMC meeting could propel the crypto market to retest its previous highs. Additionally, cryptocurrencies and risk assets could benefit from liquidity inflows if the Fed adopts decisions similar to those of other central banks, such as the European Central Bank and the Bank of Canada, which recently slashed rates. The U.S. dollar index (DXY) also rose to a 30-day high following the news, indicating increased capital availability for investments.