Crypto Market Rebounds Amid Soaring Inflation, But Bear Market Not Over Yet

The cryptocurrency market is experiencing a rebound after the Consumer Price Index (CPI) rose to a three-year high of 4.2% in May, driven largely by surging energy costs tied to the renewed US-Iran conflict.

BTC edged up to around $62,000, a slight gain on the day, while other top cryptocurrencies like Ethereum, XRP, and Solana also ticked higher.

However, CryptoQuant argues that the bear market is not over yet, with the firm's realized-price floor near $53,600 still untested. This level has historically marked cycle bottoms for Bitcoin, including the November 2022 FTX low.

A new headwind for crypto may be approaching from outside the market: SpaceX's initial public offering (IPO) is set to price on Thursday and begin trading on Nasdaq under ticker SPCX. The firm has drawn over $250 billion in demand against a target of around $75 billion, which could drain liquidity from the crypto market.