Some observers remain skeptical about the sustainability of this inflation-driven rebound, arguing that the collapse in oil prices primarily fueled slower cost-of-living growth in June and that oil’s recent rebound makes that data obsolete.
“3.5% [CPI] The figure was boosted by a 10% drop in gasoline through June, and that move had already reversed before the report was published, with Brent at a one-month high as the Hormuz situation intensifies,” Ryan Lee, chief analyst at crypto exchange Bitget, said in an email.
“Markets are recovering with a June print, while July develops differently, and the July print will be the first to carry the war premium,” Lee added.
Jasper De Maere, OTC trader at freight market maker Wintermute, also urged caution, although he acknowledged the inflation-driven rebound and profit-taking near $65,000.
“While the inflation data is genuinely constructive and while the positive headlines are very refreshing, it is worth noting that the backdrop has not cleared with the US attacks on Iran on its fourth consecutive day, and the Fear and Greed index only going from 22 to 25, still Extreme Fear. A soft CPI reading in the face of an active military escalation is not the same as a lasting regime change in risk appetite,” he said in an email. electronic.
