Crypto Markets Show Signs of Bottoming as US-Iran Deal Emerges

The week started with inflation data showing that US prices rose to a three-year high of 4.2%, driven by a 23.5% surge in energy prices tied to the war in Iran.

This hot CPI print repriced the rate-cut narrative, and prediction markets now put the odds of the Fed holding rates at 3.50%-3.75% for the June 16-17 FOMC meeting at roughly 99%.

The energy price shock had a ripple effect on crypto markets, with Bitcoin defending the $60,000-$62,000 zone and staying elevated due to its risk premium.