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Bitcoin nears $65,000 after cooler US inflation report
The June CPI drop and easing energy prices improved the near term case for fewer Fed rate hikes, lifting BTC toward $64,832 before US-Iran tensions pushed oil back up.
Bitcoin traded near $65,000 on July 14 after a sharper-than-expected slowdown in US inflation weakened the argument for another near term Federal Reserve interest rate increase. CryptoSlate data showed BTC rose as high as $64,832 after the report, gaining about 4% from its intraday low and coming within $200 of a level it has struggled to hold over the past month.
The Labor Department said headline consumer prices fell 0.4% in June, its largest monthly decline since April 2020. Prices were 3.5% higher than a year earlier, down from 4.2% in May and below economists’ 3.8% forecast, while core CPI was unchanged for the month and rose 2.6% year over year.
A key driver was the energy component of CPI. Energy prices fell 5.7% in June, and gasoline prices declined 9.7%, contributing the most to the headline monthly drop, which helped support risk assets heading into the July FOMC.
CryptoSlate also noted that the inflation tailwind may not last because BTC was reacting to June conditions while July’s energy backdrop has shifted. The article tied that shift to crude price moves, citing Brent above $87 per barrel early on July 14 before paring gains, and West Texas Intermediate reaching an intraday high around $80.53 as US actions and developments around the Strait of Hormuz altered oil expectations.
Latest closeWTI crude $78.04 ▲9.3%|Brent $83.15 ▲9.4%|Gasoline (RBOB) $2.974 ▼0.4%