Bitcoin rises above $65,000 as US inflation eases, Fed rate hopes fade

U.S. consumer‑price (CPI) and producer‑price (PPI) data for June came in below expectations, easing concerns that the Federal Reserve will raise rates in July. The softer inflation numbers lifted risk appetite across markets and triggered a sharp rally in the cryptocurrency sector.

Bitcoin jumped from the low‑$63,000 range to breach $65,000, gaining roughly 2‑4 % in a single session. The move was amplified by a short‑squeeze that forced liquidations of $200‑270 million in Bitcoin‑related short positions and attracted $180 million of net inflows into spot Bitcoin ETFs. Trading volume fell sharply, and exchange wallets recorded a net inflow of about 4,800 BTC, suggesting a tentative rebound rather than a broad‑based rally.

Ethereum also rallied, testing the $1,850‑$1,900 resistance band and briefly reaching $1,845, a gain of about 5‑6 % on the day. Institutional interest in both assets remains strong, with continued ETF inflows and growing miner participation in AI‑related compute contracts.

Analysts note that the price action remains vulnerable to any renewed inflation pressure, higher oil prices, or a shift in Fed messaging, especially after upcoming testimony by former Fed governor Kevin Warsh. The crypto market’s total capitalization now exceeds $2.3 trillion, underscoring the sector’s sensitivity to macro‑economic cues.