Bitcoin nears $65,000 as cooling U.S. inflation guts the Fed rate-hike trade
Bitcoin and other cryptocurrencies rallied as cooling U.S. inflation data reduced the likelihood of further Federal Reserve interest rate hikes. Meanwhile, oil prices surged due to geopolitical tensions involving the U.S. and Iran.
Why it matters
The correlation between macroeconomic data and crypto-asset performance highlights the increasing integration of digital assets into global financial markets.
June headline inflation fell to 3.5% from 4.2%, and core inflation, which strips out food and energy, eased to 2.6% from 2.9%. Cooling in the core measure means the relief is not just cheaper energy, and it takes the strongest argument for another hike off the table.
The article uses standard financial reporting terminology and cites market analysts.
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