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Bitcoin holds above $64,000 after hotter inflation turns cooler

The June CPI fell 0.4% month over month, with core inflation slowing to 2.6%, lifting expectations the Fed will keep rates unchanged at its next meeting.

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Bitcoin rose above $64,000 on Tuesday as a closely watched inflation gauge showed U.S. consumer prices cooling more than expected in June, shifting rate-hike expectations for the Federal Reserve. Decrypt reports that the Consumer Price Index fell 0.4% month over month, versus economists' forecast for a 0.1% decline, marking the largest monthly drop since April 2020.

Following the report, Bitcoin steadied around $64,300, up 2.3% for the day, according to CoinGecko data cited by Decrypt. Ethereum rose more than Bitcoin, up 5.4% to around $1,890 during the same timeframe.

Decrypt also linked the inflation shift to what traders see as the next set of monetary-policy signals. CME FedWatch data referenced in the article showed traders growing more confident the Fed would leave rates unchanged later this month, with the policy target range at 3.5% to 3.75%.

Even so, the article said geopolitical tensions continue to weigh on crypto sentiment, pointing to escalating conflict between the U.S. and Iran over the Strait of Hormuz. It added that while falling energy costs drove much of the June slowdown, food and shelter costs rose, leaving annual inflation at 3.5% and core inflation at 2.6% through June, down from 2.9% in the prior month.

Latest closeBitcoin $64,752.03 ▲4.0%|Ethereum $1,880.15 ▲6.0%

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