Bitcoin Climbs Near $65K as Cooling Inflation Reduces Rate-Hike Expectations
June CPI data lowered Fed rate-hike odds to 13%, boosting Bitcoin to nearly $65,000.
Bitcoin surged toward $65,000 on Wednesday after the release of the June Consumer Price Index (CPI) showed inflation cooling more than expected, effectively diminishing the case for further Federal Reserve rate hikes.
Market Reaction
- June CPI print reduced the probability of a rate hike from 43% to 13%.
- Bitcoin rose to nearly $65,000, approaching its highest level in weeks.
- Analysts now look ahead to the September FOMC meeting for further guidance on monetary policy.
The cooling inflation data has reshaped market expectations, with traders re-evaluating positions in risk assets like cryptocurrencies. The shift away from hawkish Fed bets provided a tailwind for Bitcoin, which has been sensitive to interest rate expectations throughout 2024.
Market participants are now closely monitoring the Fed's next steps, as the September meeting could offer clearer signals on the trajectory of rates. A prolonged pause or eventual rate cut could further support Bitcoin and other digital assets.