Bitcoin rally cools as investors digest inflation data, oil clouds outlook
Bitcoin's recent rally stalled as investors reacted to U.S. inflation data that failed to guarantee an immediate Federal Reserve interest-rate cut. Market participants are now balancing cooling inflation signals against rising oil prices and geopolitical uncertainty.
Why it matters
The shift in crypto market sentiment reflects a growing maturity where digital assets are increasingly sensitive to macroeconomic indicators rather than just speculative trends.
Bitcoin’s BTC $ 64,532.45 rally on Tuesday petered out as investors considered a weaker-than-forecast U.S. inflation figure wasn’t enough to prompt a Federal Reserve interest-rate cut.
While it’s still 3% higher over 24 hours, the largest cryptocurrency has dropped 0.5% since midnight. Ether (ETH), up 4.7% in 24 hours, has also pulled back by 0.5%.
On Polymarket, the perceived odds of a rate increase plunged from 34% to 6.7% after the data came out. Bettors now weigh a 93% chance the Federal Reserve will leave rates unchanged this month, and the CME’s FedWatch shows 30-day fed funds futures prices indicating just a 14.4% chance of an increase.
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