Bitcoin explosion: price jumps to $110,000 thanks to falling inflation!

Bitcoin explosion: price jumps to $110,000 thanks to falling inflation!

On June 11, 2025, the Bitcoin market shows a positive reaction to current economic developments. How bitcoin-2go reported, US inflation fell to 2.4% in May, below expectations of 2.5%. This news caused the Bitcoin price to rise to almost $110,000. Declining inflation is seen as conducive to the bullish market environment.

Another important factor affecting the market environment is the upcoming interest rate cut by the Federal Reserve (FED). A cut in the interest rate to between 4.00% and 4.25% is expected on September 17th with a probability of 67%. The current Fed funds rate is 4.5%, which is considered an important economic indicator because changes to it can affect borrowing costs for consumers and businesses.

Market developments and geopolitical factors

In addition, there is increased political pressure on the FED. Among other things, Donald Trump is calling for an interest rate cut of 100 basis points. Geopolitical tensions also appear to be easing as the US and China move closer to a final trade deal. High-level delegations have held talks in London and there is already agreement on key points such as tariffs and export restrictions, said Trump.

Tariffs of 55% on Chinese exports to the USA and 10% on US goods to China are currently weighing on the trading environment. A final agreement could be decided at the presidential level, which could lead to a positive shift in sentiment and greater stability in the markets.

Important economic indicators

Additionally, the Producer Price Index (PPI) will be released on Thursday and is expected to rise to 2.6%. However, the market environment remains sensitive as increased liquidations have already been observed in Bitcoin around the price of $103,800. The combination of a lack of an increase in inflation and the geopolitical easing is currently promoting an optimistic climate for investors.