BUSINESS

United States inflation data fuels Bitcoin surge

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United States – Bitcoin surged past $65,000 on Wednesday, touching an intraday peak of $65,518 and pushing its market capitalization above $1.3 trillion. The latest advance extended a rally that began on July 14, as traders responded to softer-than-expected U.S. producer price index data and easing consumer inflation, which reduced near-term pressure on the Federal Reserve to raise interest rates. The move followed a break above the $64,000 resistance level on Tuesday, when Bitcoin climbed to an intraday high of $65,511 before briefly pulling back. United States – The continued strength on Wednesday carried the cryptocurrency through additional resistance around $65,000 and coincided with a wave of liquidations across digital asset markets. Roughly $209 million in short positions were wiped out as prices accelerated higher, reflecting traders who had bet against further gains. Market participants cited the cooling inflation backdrop and lower expectations for a July rate hike as key factors behind the move. According to CME’s FedWatch tool, the implied probability of the Federal Reserve raising rates at its upcoming July meeting fell to 10.2 percent, down from 31 percent a week earlier.

Prepared by Christopher Adams and reviewed by editorial team.

Timeline of Events

Last week Fed hike odds near 31 percent
July 14 Softer inflation data boosts Bitcoin
Tuesday Bitcoin breaks $64,000 resistance level
Tuesday Intraday high reaches about $65,511
Wednesday Bitcoin surges past $65,000 mark
Wednesday Price peaks around $65,518 intraday
Wednesday About $209 million crypto shorts liquidated
Today Fed hike odds decline to 10.2 percent

Why This Matters to You

Bitcoin's surge means your digital assets could be worth more. But, it also shows how global events affect crypto values. Check your portfolio, and consider if you're comfortable with these swings.

The Bottom Line

Lower U.S. inflation data is boosting Bitcoin. It's a reminder that economic indicators can drive crypto markets. Worth forwarding if you know someone considering a Bitcoin investment.