Bitcoin Reclaims $65K as U.S. CPI Cools — Bull Market Back On?
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Bitcoin (BTC) surged past $65,000 on Thursday following a cooler-than-expected U.S. Consumer Price Index (CPI) report, reigniting optimism for a sustained crypto bull market.
The U.S. Department of Labor announced that June inflation rose just 2.6% year-over-year, slightly below the 2.8% forecast, easing investor concerns about future rate hikes. BTC responded immediately, jumping 6.3% in the last 24 hours to hit a six-week high.
“Today’s CPI data was the green light risk markets needed,” said Michael Carter, a senior strategist at AlphaEdge Capital. “Bitcoin is now back on track to test previous highs.”
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Rate Cut Hopes Boost Risk Assets
Lower inflation has fueled expectations that the Federal Reserve could begin cutting rates as early as September, a move seen as bullish for both equities and crypto assets.
Traders on CME’s FedWatch Tool are now pricing in a 67% probability of a rate cut by the September FOMC meeting.
“Bitcoin and other cryptos thrive on liquidity,” explained blockchain analyst Sara Ho. “Rate cuts could drive fresh capital into decentralized assets.”
Crypto Market Follows BTC’s Lead
Bitcoin’s rally lifted the broader crypto market. Ethereum (ETH) rose 4.8% to $3,540, while altcoins like Solana (SOL) and Avalanche (AVAX) posted gains of 6% and 5.3% respectively.
Crypto-related stocks, including Coinbase (COIN) and MicroStrategy (MSTR), also jumped at the open, climbing 4.5% and 5.1% respectively.
What’s Next for Bitcoin?
Technical analysts point to $67,500 as the next key resistance level. A breakout above that could set the stage for a retest of the March all-time high near $73,000.
On-chain data shows accumulation from long-term holders has resumed, indicating strong conviction among Bitcoin believers.
“We’re seeing bullish divergence between price and active addresses,” noted Glassnode’s latest report. “This typically precedes larger upward moves.”
With inflation cooling and macro conditions aligning, Bitcoin’s recent push above $65K could mark the beginning of a renewed bull run. However, volatility remains high, and traders are advised to stay alert to incoming macroeconomic data and central bank statements.
