Bitcoin (BTC) Update: Analyst Claims $200K BTC by Year-End is Now a Strong Possibility Following Tepid U.S. May Inflation Report.

Wednesday’s softer-than-expected U.S. inflation has likely set the stage for accelerated gains in bitcoin, potentially reaching $200,000 by the end of the year, according to Matt Mena, crypto research strategist at 21Shares. “If BTC breaks out of the $105K-$110K range with conviction, we could see a sharp move to $120K and, more importantly, reach our year-end price target of $138.5K by the end of the summer,” Mena stated. “Today’s CPI print may serve as a bullish catalyst for Bitcoin—and it may be the unlock that brings this target forward by several months. If momentum continues building, a $200K Bitcoin by year-end is now firmly in play,” he added.

21Shares is one of the world’s first and largest issuers of crypto exchange-traded products (ETPs). The Labor Department’s report released Wednesday indicated that the cost of living, measured by the consumer price index (CPI), rose 0.1% last month after an increase of 0.2% in April. Economists surveyed had forecast a 0.2% increase. Notably, the CPI for durable goods, largely imported or manufactured with imported content, decreased by a seasonally adjusted 0.1% month-to-month (-1.3% annualized), suggesting that tariffs have not yet been fully reflected in consumer prices.

The annualized CPI advanced 2.4%, with core inflation holding steady at 2.8%. “This continuous trend of cooling inflation strengthens the case for potential policy easing later this year. As we approach the Fed’s June meeting, the focus now shifts to how soon policymakers may address cooling inflation and evolving macro clarity,” Mena noted.

The CPI report led traders to price in 47 basis points of Fed easing, equivalent to approximately two 25 basis point rate cuts this year, compared to 42 basis points earlier this week. Furthermore, traders have fully priced in the rate cut for October, with the September probability exceeding 70%.

Mena explained that this CPI tailwind follows several bullish catalysts, such as sovereign and institutional adoption, along with upcoming stablecoin regulation. “As macro clarity improves, we should see Bitcoin flows accelerate—driven by renewed institutional confidence, increased activity from Bitcoin treasuries, and the ongoing rollout of state-level Strategic Bitcoin Reserve (SBR) programs. These factors could supercharge ETF inflows and reinforce Bitcoin’s evolving role in global portfolios. Bitcoin is built for this environment,” Mena added.

BTC changed hands at $108,440 at press time, according to data.