Bitcoin nears $65,000 as cooling U.S. inflation dampens Fed rate hike bets
Bitcoin climbed to $64,800 following cooler-than-expected U.S. inflation data, which significantly lowered expectations for near-term Federal Reserve interest rate hikes. June headline inflation fell to 3.5%, while core inflation slowed to 2.6%. The soft economic figures caused implied Fed rate hike odds to collapse from 43% to 13%. Consequently, risk assets rebounded globally, with Ether rising 5.3% to $1,880 and daily bitcoin trading volume reaching $31 billion across crypto exchanges.
Key takeaways
- 1June U.S. headline inflation dropped to 3.5% while core CPI slowed to 2.6%.
- 2Implied odds of a Federal Reserve interest rate hike fell sharply from 43% to 13%.
- 3Bitcoin rose 3.6% to $64,800 as daily trading volume reached $31 billion.
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Why it matters
Lower interest rate expectations reduce the yield appeal of traditional cash assets, pushing global liquidity back into non-yielding crypto markets. Investors should watch sustained spot ETF inflows and macroeconomic signals ahead of the Fed's September meeting.
Discussion
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