Bitcoin Ticks Up to $64K Following Largest Inflation Slowdown in Six Years
Bitcoin rose above $64,000 after June U.S. inflation data came in cooler than expected, reinforcing expectations that the Federal Reserve will hold rates steady at its next meeting. The Consumer Price Index fell 0.4% month over month, versus forecasts for a 0.1% drop, and annual inflation eased to 3.5% from 3.9%. Core inflation also slowed to 2.6% year over year. Lower energy prices drove the decline, outweighing higher food and shelter costs. Bitcoin traded around $64,300, up about 2.3% on the day, while Ethereum gained 5.4%. Traders became more confident the Fed will keep rates unchanged this month, though many still expect a rate hike later in the year. Cooler inflation is supportive for crypto because lower expected rates tend to favor risk assets.
