Bitcoin has rallied in recent days after inflation data for May indicated prices rose by only 2.4%, which is lower than anticipated, leading to hopes of Federal Reserve rate cuts. The cryptocurrency was recently near $110,000, recovering from a dip in late May, and has gained 4.4% over the past week. The overall altcoin market mirrored Bitcoin's performance with Ethereum seeing steady increases as well. Analysts suggest that macroeconomic factors, including the potential for Fed rate cuts, are contributing to this bullish momentum. The Consumer Price Index (CPI) report showed that core prices climbed just 0.1%, with annual inflation still above the Fed's 2% target. Despite previous increases, the recent reports hint at a moderation in inflation, which could influence the Fed's approach to interest rates moving forward. Overall, there is optimism in the market, with predictions that Bitcoin might reach new all-time highs soon, although analysts also caution about potential volatility due to economic data releases.

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