Bitcoin reclaimed the $63,000 level on June 11 after U.S. President Donald Trump announced at 1:28 p.m. EDT the cancellation of scheduled strikes against Iran. The cryptocurrency had earlier reached $62,500, shaking off a hotter-than-expected May producer price index and rising Middle East friction. Trump stated that discussions with Iranian leadership had been approved by all parties involved, including the United States, Israel, Saudi Arabia, UAE, Qatar, Turkey, Pakistan, Bahrain, Kuwait, Jordan, and Egypt, and that the naval blockade would remain in effect until the transaction is finalized. The May PPI jumped 1.1% according to the Bureau of Labor Statistics, outpacing the 0.7% consensus forecast, with the U.S. annualized PPI climbing to 6.5%—the largest 12-month advance since November 2022. Analysts warn that prolonged conflict in the Strait of Hormuz may force central bank rate hikes and trigger a recession.
Bureau of Labor Statistics Reports May PPI Surge of 1.1%
Data released by the Bureau of Labor Statistics showed the producer price index jumped 1.1% in May, outpacing the 0.7% consensus forecast. The U.S. annualized PPI climbed to 6.5%, marking the largest 12-month advance since November 2022. According to the agency, the primary driver behind the headline spike was a 2.8% surge in final demand goods, fueled by a 10.7% jump in energy prices. With headline PPI outrunning the consumer price index, which topped 4.2% in May, wholesale input costs in the U.S. are rising faster than retail businesses can comfortably adjust prices. This signals that unless commodity pressures ease, companies will either have to absorb the costs—damaging profit margins—or pass them along to consumers.
Bitcoin traded sideways Thursday, recovering to reclaim the $62,000 threshold by 9:14 p.m. EST on June 10 after a post-midday sell-off on Wednesday. The uptrend continued, briefly pushing bitcoin past the $63,000 threshold before it consolidated above $62,500. At this price, bitcoin was up 0.6% over a 24-hour period but remained down 1.6% over seven days. The marginal increase helped lift bitcoin's market capitalization to $1.25 trillion. Global risk assets appeared broadly immunized against the day's macroeconomic and geopolitical headwinds, with Asian and European stock indexes closing with modest gains.
Trump Cancels Iran Strikes at 1:28 p.m. EDT
At 1:28 p.m. EDT, U.S. President Trump stated: "Based on the fact that discussions with the Islamic Republic of Iran have been brought to the highest level of Iranian leadership and approved, I have, as President of the United States of America, cancelled the scheduled strikes and bombings against Iran this evening. Discussions and final points have been, in both concept and great detail, approved by all parties involved, including the United States, Israel, Saudi Arabia, UAE, Qatar, Turkey, Pakistan, Bahrain, Kuwait, Jordan, Egypt, and others. The Naval Blockade will remain in full force and effect until this Transaction is finalized—Time and place of the signing to be announced shortly."
The latest U.S. strikes, which officials frame as defensive operations, came days after Iranian forces shot down a U.S. military Apache attack helicopter in the Strait of Hormuz. While both sides still publicly back negotiations, commentators fear the military exchanges will complicate a settlement and strengthen hawks who favor a return to full combat operations. Without a deal to permanently end the fighting, shipping in the Strait of Hormuz will remain curtailed, weighing heavily on the global economy. Analysts warn that the longer the conflict drags on, the higher the chances that central banks will hike interest rates, potentially slipping the global economy into a recession.
At press time, BTC is changing hands for $63,280 per coin.
FAQ
What did Bitcoin do on June 11?
Bitcoin reclaimed the $63,000 level on June 11 after U.S. President Donald Trump announced at 1:28 p.m. EDT the cancellation of scheduled strikes against Iran. The cryptocurrency had earlier reached $62,500, consolidating above that level at the time of writing.
Why did the May PPI jump 1.1%?
According to the Bureau of Labor Statistics, the primary driver behind the May PPI spike was a 2.8% surge in final demand goods, fueled by a 10.7% jump in energy prices. The U.S. annualized PPI climbed to 6.5%, marking the largest 12-month advance since November 2022.
