Financial markets found fresh support after the latest U.S. inflation report pointed to a continued moderation in consumer price growth, easing concerns that the Federal Reserve could face renewed pressure to tighten monetary policy.
Summary:
New U.S. inflation data showed annual CPI slowing to 3.5% in June
Bitcoin briefly moved above $64,000 as investors reacted to the report
Markets continue to expect the Federal Reserve to leave interest rates unchanged this month
The U.S. Bureau of Labor Statistics reported that the Consumer Price Index rose 3.5% year over year in June, representing the first slowdown in annual inflation since February. A decline in energy costs, particularly gasoline prices, helped reduce the headline figure, while underlying inflation also softened. Core CPI was unchanged from the previous month, and its annual reading eased from 2.9% to 2.6%.
Digital assets responded almost immediately. Bitcoin climbed above $64,000 shortly after the data release before retreating as traders locked in short-term gains. The move reflected expectations that cooling inflation could preserve a more favorable environment for risk assets.
Even with the weaker inflation reading, interest-rate expectations remained largely unchanged. Market pricing continues to indicate that the Federal Reserve is widely expected to keep borrowing costs at current levels when policymakers meet on July 28–29.
Some economists warned against interpreting a single inflation report as confirmation that price pressures have been defeated. While the latest figures suggest inflation is moving in the right direction, uncertainties surrounding global energy markets and geopolitical developments could still influence future readings.
For investors, however, the report reinforced the view that inflation is gradually easing without significantly altering the Fed's near-term policy outlook, helping explain the positive reaction across cryptocurrency markets.
Earlier, we reported on investor Jeremy Grantham's warning that Bitcoin could eventually become worthless as the AI stock bubble continues to expand.