Analytical & Forward-Looking
Bitcoin Rally Accelerates as Cooling Inflation Reinforces Bullish Outlook
Softer U.S. inflation data has reignited bullish bets on bitcoin, with analysts at 21Shares now suggesting a year-end target of $200,000 is increasingly plausible.
The Consumer Price Index (CPI) rose just 0.1% in May, missing economist expectations and signaling continued disinflation. Core inflation remained steady at 2.8%, and durable goods prices — often impacted by trade policy — dropped 0.1% month-over-month, underscoring limited pass-through from recent tariff actions.
Matt Mena, research strategist at 21Shares, said the inflation data could mark a turning point for bitcoin. “If BTC can decisively break out of the $105K to $110K range, we could see a rapid surge toward $120K and potentially reach our $138.5K summer target even earlier than expected,” Mena told CoinDesk.
He added, “The CPI miss may be the unlock that accelerates Bitcoin’s trajectory — $200K by year-end is now a very real scenario.”
Markets reacted accordingly. Traders now price in 47 basis points of Fed rate cuts this year, up from 42 earlier in the week, with a full cut expected by October.
Beyond macro data, Mena pointed to strengthening crypto-native fundamentals, including upcoming stablecoin regulations, institutional flows into bitcoin ETFs, and the emergence of strategic national reserves for BTC.
“These forces are aligning at the right time,” Mena said. “Bitcoin is increasingly viewed as a core component of diversified global portfolios, and macro clarity only reinforces that thesis.”
At last check, BTC was trading at $108,440.
