Bitcoin Price Tops $110K As Softer-Than-Expected Inflation Data Fuels Fed Pivot Bets

Bitcoin BTC/USD surged to an intraday high of $110,125 following the release of softer-than-expected U.S. inflation data before settling near $109,900. The price move, modest at 0.6% over the past 24 hours, comes as traders increase bets on Federal Reserve interest rate cuts, igniting momentum across risk assets.

The May Consumer Price Index report showed headline inflation rising just 0.1% month-over-month and 2.4% year-over-year, both slightly below consensus estimates. Core inflation printed at 0.1%, well under the expected 0.3% figure. In response, traders now price in two rate cuts before year-end, with September as the likely starting point, according to CME FedWatch Tool data.

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A shift in Fed policy would mark a key tailwind for Bitcoin, which often rallies in low-rate, high-liquidity environments. Broader macro conditions are also improving for crypto markets. Central banks worldwide are signaling accommodative stances, and the global M2 money supply grew approximately 6% year-over-year in May, which is another historical trigger for digital asset rallies.

In a social media post, President Donald Trump announced that a U.S.–China trade deal is “done.” The declaration eased global jitters and gave risk assets a boost, helping Bitcoin surge higher. Titan of Crypto pointed out that Bitcoin’s shorter-term moving average is about to cross above its longer-term one, a classic “golden cross” that many traders see as a green light for more upside. For confirmation, the price must hold above $109,000.

Glassnode data shows sustained exchange outflows this week, with net positions on major trading platforms declining steadily. It suggests continued accumulation and reduced sell-side pressure, both of which typically precede upward price moves.

Meanwhile, alternative asset manager, F Street, has launched a $10 million Bitcoin treasury allocation plan led by Chief Operating Officer, Mike Doney. The firm will execute daily dollar-cost average purchases and implement a public proof-of-reserves system to enhance transparency.

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GameStop Corp GME doubled down on its crypto strategy this week. After a 4,710-BTC acquisition, the company followed up with a $1.75 billion zero-interest convertible note sale, cementing Bitcoin as a strategic, long-term treasury holding rather than a fleeting experiment.

Ionic Digital showed 132.9 BTC mined and 97 coins sold at an average price of $101,207, generating a net profit of $9.8 million. The company’s Bitcoin holdings increased 1.44% month-over-month.

Analyst Ted Pillows drew attention to parallels between Bitcoin and gold during periods of inflation in the past. He suggested that if patterns repeat, BTC could reach $130,000 by Q3 of 2025. While not a price target, the comparison highlights Bitcoin’s evolving role as a hedge against the erosion of fiat currencies.

Bitcoin trades above its 111-day, 200-day, and 365-day moving averages, with $111,980 as the key level to clear for fresh highs. A break below $106,265 or $105,000 would risk a deeper pullback.

Three catalysts will chart Bitcoin’s next move: potential rate cuts from the Federal Reserve, fresh inflows from institutional buyers, and the resilience of critical support levels. With coins moving off exchanges, central bank rhetoric easing, and bullish setups intact, the odds still favor a rally, provided confidence holds.

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