Bitcoin Surges Past $107,500 as Market Anticipates US CPI Data and Fed Rate Cuts
Cryptocurrency markets are on high alert as Bitcoin breaks through $107,500 ahead of crucial US inflation data. Traders are speculating about potential Federal Reserve rate cuts, with the May CPI release expected to show a 2.5% headline inflation rate - the first monthly increase after three consecutive declines. This development could significantly impact Bitcoin's trajectory and the broader crypto market.
Crypto Market Awaits US CPI Data as Bitcoin Breaks $107,500 Amid Fed Rate Cut Speculation
Cryptocurrency markets are bracing for pivotal US inflation data this week, with bitcoin leading the charge past $107,500 as traders anticipate potential Federal Reserve policy shifts. The May CPI release looms as a critical catalyst, with economists forecasting a 2.5% headline inflation rate - marking the first monthly increase after three consecutive declines.
Former President Trump's unexpected call for 100 basis point rate cuts adds volatility to market expectations, while US-China trade talks in London provide additional macroeconomic context. Bitcoin's 2% daily gain demonstrates the market's sensitivity to these macroeconomic indicators, with traders positioning for either a breakout or retracement depending on Wednesday's data.
Paraguay Denies Bitcoin Legal Tender Announcement After Presidential Account Hack
Paraguay's government swiftly refuted a false declaration posted on President Santiago Peña's compromised X account, which claimed Bitcoin WOULD become legal tender on June 9. The unauthorized post outlined a fabricated plan to establish a $5 million BTC treasury reserve and crypto-exclusive bond offerings.
Within minutes, the Presidency's official account discredited the announcement, confirming a security breach. The hacked message included a BTC address that remains unfunded. Authorities have launched an investigation into the incident.
Robinhood Excluded from S&P 500 Rebalance, HOOD Stock Dips as Bitcoin Rises
Robinhood Markets Inc. faced a sharp selloff Monday after S&P Dow Jones Indices announced no changes to the S&P 500 composition, dashing expectations for the trading platform's inclusion. HOOD shares fell approximately 5% on the news, underperforming Bitcoin (BTC) which trended higher during the session.
The exclusion comes despite Robinhood clearing all technical requirements for index membership. With a $66 billion market capitalization—triple the minimum threshold—and compliance with listing standards, analysts speculate the oversight resulted from the index committee's decision to maintain the current lineup rather than qualitative deficiencies.
Bank of America had previously identified Robinhood as the prime candidate for inclusion, fueling a 100% rally in 2025 as traders anticipated index-driven institutional demand. The abrupt reversal highlights the market's sensitivity to benchmark-related flows, even as cryptocurrency markets demonstrate decoupled momentum.
The Blockchain Group Seeks $342 Million to Expand Bitcoin Treasury
Paris-based The Blockchain Group announced plans to raise €300 million ($342 million) to acquire additional Bitcoin, reinforcing its corporate treasury strategy. The publicly traded company will utilize an "at-the-market" offering in collaboration with French asset manager TOBAM, with share purchases capped at 21% of daily trading volume.
The MOVE follows last week's $68 million BTC purchase and aligns with a growing trend of public companies adopting Bitcoin-heavy treasury strategies. TOBAM will acquire shares daily, with pricing based on the higher of the previous day's closing price or volume-weighted average.
Trump Media and Semler Scientific Emerge as Potential Bargain Bitcoin Treasury Plays
The market is witnessing a surge in Bitcoin treasury companies, with firms increasingly mirroring MicroStrategy's (MSTR) strategy of aggressive BTC accumulation. Valuation metrics are now under scrutiny as investors seek to compare these entities.
Greg Cipolaro, NYDIG's global head of research, emphasizes the premium calculation as a critical metric. "The premium relative to underlying net assets - including Bitcoin holdings, cash, and enterprise value minus obligations - determines a company's ability to act as a share-to-BTC converter," he noted in a June 6 report.
While mNAV (market value to net asset value) remains a popular gauge, Cipolaro warns it's "woefully deficient" alone. A ratio above 1.0 indicates investor willingness to pay premium access, while below 1.0 suggests the market values the company below its Bitcoin stash.
Paraguay President's X Account Hacked, Falsely Claims Bitcoin as Legal Tender
Paraguay's government has confirmed unauthorized access to President Santiago Peña's X account after a post falsely declared Bitcoin as legal tender. The now-deleted announcement, written in English with a Spanish attachment, claimed the launch of a $5 million Bitcoin-backed reserve fund and integration into the national financial system.
The fabricated decree used official-looking formatting and the national coat of arms, but raised immediate red flags due to promotional language and absence from verified government channels. On-chain analysis revealed no corresponding treasury movements to support the claims.
Officials described the incident as 'irregular activity' and urged citizens to disregard the misinformation. The episode highlights ongoing security challenges for public figures in the digital asset space, mirroring previous high-profile crypto-related account compromises.
