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Bitcoin climbs above $65,000 as U.S. inflation worries ease
U.S. PPI fell 0.3% in June, and markets are still pricing two 25-basis-point Fed hikes this year.
Bitcoin rose above $65,000 in the U.S. afternoon of July 15 as investors grew more comfortable about inflation after softer U.S. data. Yahoo Finance attributes the move to easing expectations for additional interest rate hikes later this year.
The U.S. Producer Price Index, an inflation gauge focused on wholesale costs, declined 0.3% in June, after economists expected it to be unchanged. Yahoo Finance also cites the CPI posting an unexpectedly sharp 0.4% decline in June, marking a second straight day of positive inflation reports.
The report linked the cooling inflation backdrop to falling crude oil prices following a U.S. and Iran ceasefire. With less pressure on the Federal Reserve to raise rates, risk assets including cryptocurrencies gained, with the total crypto market up more than 2% to above $2.3 trillion.
Bitcoin had been trading in a range of $60,000 to $65,000 since the end of June, and analysts said $65,000 is a key resistance level to clear. Yahoo Finance said Ethereum is trading above $1,900 for the first time since early June, while markets continue to price two 25-basis-point Fed hikes, scheduled for September and December.
Latest closeWTI crude $79.00 ▼0.8%|Bitcoin $62,826.25 ▼1.5%|Ethereum $1,828.50 ▼1.9%