Bitcoin Rebounds From $4K Dip as U.S. Dollar Crashes to 3-Year Lows
Cooling Inflation Revives Bullish Sentiment with $116K BTC Target in Sight
Inflation Data Triggers BTC Price Recovery While Dollar Weakens
Bitcoin’s price rebounded sharply at the June 12 Wall Street open after falling nearly $4,000 in 24 hours, touching lows around $106,600. The bounce followed a softer-than-expected U.S. Producer Price Index (PPI) report — the lowest increase since September 2024 — which added to positive sentiment already sparked by the previous day’s Consumer Price Index (CPI) data.
Together, the back-to-back cooling inflation indicators delivered a double dose of bullish momentum to crypto markets.
“Despite a modest pullback, macro conditions remain constructive for further institutional engagement and capital deployment into digital assets,” noted QCP Capital in a market update to subscribers.
US Dollar Weakens as Rate Cut Hopes Build
The U.S. dollar index (DXY) fell to its lowest level since March 2022, as traders grew increasingly confident that the Federal Reserve may start cutting interest rates by September, based on the CME Group’s FedWatch Tool.
While the Fed remains hawkish for now, these developments are creating conditions ripe for liquidity to flow back into risk assets like Bitcoin, especially with mounting political pressure from President Donald Trump, who continues to push for more aggressive easing.
Market Eyes BTC Surge to $116,000 This Month
Even amid price volatility, traders maintain a bullish outlook. The day’s bounce occurred near a key support zone around $106K–$107K, previously forecast by analysts like James Wynn and Killa on social media platform X.
“Bitcoin rejected local supply & is now pushing into demand around 106–107K,” said trader Killa. “This is a crucial level in terms of market structure.”
Killa and other market participants now see a potential push to new all-time highs around $116,000 before June ends, provided Bitcoin sustains its current trend and avoids a breakdown below the psychological $100K threshold.
Popular trader Daan Crypto Trades added that any breach of the current monthly high or low could define the rest of June’s direction for BTC.
