Bitcoin Rallies Past $64K on Softer Inflation Data
Bitcoin rose above $64,000 after June inflation data came in lower than expected, fueling bets on Fed rate cuts.
Bitcoin surged past $64,000 on Thursday following the release of U.S. inflation data for June that came in cooler than economists had anticipated, strengthening expectations that the Federal Reserve may cut interest rates in the coming months.
According to the U.S. Bureau of Labor Statistics, the Consumer Price Index (CPI) rose 3.0% year-over-year in June, down from 3.3% in May and below the consensus forecast of 3.1%. The monthly increase was 0.1%, versus an expected 0.2%. The data marks a continued slowdown in inflation from its peak of 9.1% in June 2022.
However, core CPI, which excludes volatile food and energy prices, remained sticky at 3.3% year-over-year, unchanged from May and above forecasts. Additionally, rising oil prices pose an upside risk to inflation, potentially limiting how aggressively the Fed can ease policy.
At the time of writing, Bitcoin was trading at $64,250, up roughly 3% on the day, according to data from CoinDesk. The broader crypto market also experienced gains, with ether and major altcoins rising in sympathy.