Bitcoin climbs over 4% to $64,667 as US CPI eases rate‑hike expectations
Bitcoin surged more than 4% on Tuesday, reaching $64,667.5 by 17:29 ET (21:29 GMT), marking its strongest session since mid‑April. The rally was anchored by softer US inflation data that reduced expectations of near‑term Federal Reserve tightening.
The Bureau of Labor Statistics reported that the headline U.S. consumer price index (CPI) slipped 0.4% month‑on‑month in June, the largest one‑month decline since April 2020. Core CPI, which excludes food and energy, was flat month‑on‑month after a 0.2% rise in May. Year‑over‑year, headline CPI rose 3.5% and core CPI 2.6%, both below consensus forecasts of 3.8% and 2.9% respectively and down from May’s pace.
The headline CPI deceleration was largely driven by a 9.7% month‑on‑month drop in gasoline prices, the biggest one‑month fall since August 2022. This decline pulled overall energy prices down 5.7% month‑on‑month, the steepest loss since April 2020. The gasoline price slide followed an interim memorandum of understanding (MoU) between the United States and Iran signed in mid‑June, which led to the reopening of the Strait of Hormuz—a chokepoint for roughly one‑fifth of global oil and gas shipments. Renewed shipping activity eased supply concerns and contributed to Brent crude futures falling more than 20% in the preceding month.
Despite the easing inflation backdrop, geopolitical tensions between Washington and Tehran intensified. The United States reinstated a naval blockade around Iranian ports and coastal waters hours after President Donald Trump announced the move. Earlier, Trump had floated a 20% reimbursement fee for protecting vessels transiting the Strait of Hormuz, but after contacts with Gulf nations he scrapped the fee. The blockade and the broader US‑Iran standoff caused Brent crude to surge more than 9% on the Monday following the announcement.
The softer CPI data also lowered the probability of a quarter‑point Fed rate hike this year, as indicated by the CME FedWatch tool, providing a more accommodative environment for speculative assets such as cryptocurrencies.
In corporate news, Strategy (the firm behind the ticker “STRATEGY”) raised approximately $466.7 million by selling Class A common stock between July 6 and July 12. The company made no Bitcoin purchases during the same period and had previously sold 2,225 Bitcoin coins at the start of July. Strategy has been liquidating Bitcoin holdings to meet dividend and debt obligations, financing prior Bitcoin purchases through debt and preferred‑stock issuances.
Altcoin prices largely tracked Bitcoin’s upward move. Ether rose 6.7% to $1,878.60, XRP climbed 4.8% to $1.1104, BNB increased 2.7%, Solana 3.8%, Cardano 5.2%, and Dogecoin 4.2%. The meme‑coin $TRUMP advanced 2.2%.