Americans have virtually stopped worrying about tariff-induced inflation according to a monthly survey published by the New York Federal Reserve.
BTC Edges Higher on Softer Inflation Expectations
The New York Federal Reserve’s Survey of Consumer Expectations for June, published on Tuesday, shows that Americans expect inflation to be around 3% a year from now which is 0.2% lower than their expectations from the previous survey in May. Bitcoin inched up 0.44% on the news and has been hovering around $108K all morning.
The 3% figure means Americans’ expectations around inflation have returned to pre-tariff levels seen prior to U.S. President Donald Trump’s inauguration. Actual inflation as measured by the Consumer Price Index (CPI) came in lower than expected at 2.4% for the month of May, which remains higher than the 2% level targeted by the Federal Reserve.
Trump’s controversial tariff strategy was heavily criticized by economists who expected a subsequent spike in prices after the president essentially launched a global trade war. Just yesterday, Trump shared copies of letters sent to multiple countries indicating their import taxes, which come into effect on August 1. The letters were posted on the president’s social media platform, Truth Social.
“I am pleased to announce that the UNITED STATES TARIFF Letters, and/or Deals, with various Countries from around the World, will be delivered starting 12:00 P.M. (Eastern), Monday, July 7th,” the president wrote. “Thank you for your attention to this matter!”
Overview of Market Metrics
Bitcoin’s price fluctuated between $107,499.56 and $109,198.97 since yesterday and was trading at $108,788.74 at the time of reporting. The quoted price reflects a modest 24-hour appreciation of roughly 0.74%, but the weekly price increase was significantly larger at 2.41%, according to Coinmarketcap.
Trading volume was mostly flat, increasing 0.50% to $45.20 billion. Bitcoin’s market capitalization rose by 0.74% to $2.16 trillion and BTC dominance dropped by 0.01% to 65.09%.
The total number of open BTC futures contracts was also mostly unchanged, dipping 0.11% to $73.97 billion since yesterday. Liquidations came in at $36.20 million in total over 24 hours with bulls suffering around $20.23 million in liquidations. Bears with short positions were liquidated to the tune of $15.97 million.