Bitcoin climbs to $65,000 on softer U.S. inflation data, but gains constrained by renewed U.S.–Iran hostilities
Bitcoin extended its rally on Wednesday, rising 1.8% to $65,368.1 by 10:16 ET (14:16 GMT) and briefly touching an intraday high of $65,623, the highest level observed since June 22. The price lift was attributed to a softer‑than‑expected U.S. producer‑price index (PPI) release, which signaled easing wholesale‑price pressures.
The Bureau of Labor Statistics reported that the PPI fell a seasonally adjusted 0.3% in June, contrary to Dow Jones forecasts that had expected a flat reading. Core producer prices, which exclude food and energy, rose 0.2% month‑on‑month, just below the 0.3% consensus estimate. A narrower core gauge that also excludes trade services increased 0.1% and was up 5.1% year‑over‑year. On an annual basis, producer prices were 5.5% higher than a year earlier. May’s PPI figure was revised down to a 0.6% gain from an initially reported 1.1% increase.
The PPI data followed Tuesday’s consumer‑price index (CPI) release, which showed a 0.4% decline in retail prices for June—the sharpest monthly drop since April 2020—bringing the annual CPI rate down to 3.5%. Core CPI held flat for the month, reducing its year‑over‑year pace to 2.6%. Both the PPI and CPI remain above the Federal Reserve’s 2% inflation target, but the declines mark continued progress in the central bank’s effort to tame price growth.
Despite the inflation‑related optimism, market participants remained wary of a potential resurgence in U.S. inflation driven by renewed oil‑supply disruptions linked to the escalating conflict between the United States and Iran. The article notes that the U.S. and Iran exchanged strikes in the early hours of Wednesday, with Iran launching missile and drone attacks on Gulf states hosting U.S. bases and threatening commercial shipping in the Strait of Hormuz. U.S. President Donald Trump warned that strikes would continue and could intensify until a deal is reached. These developments pushed oil prices higher, keeping inflation concerns alive.
Fed Chairman Kevin Warsh cautioned lawmakers that the June soft‑inflation reading does not constitute a “mission accomplished” moment, and markets continue to price in a possible Federal Reserve rate hike later in the year, potentially as early as September.
In the broader cryptocurrency market, most altcoins recovered some of their recent losses. Ether (ETH) rose 2.8% to $1,933.86, XRP gained 2.1% to $1.1280, Solana and Cardano advanced 1.4% and 1.5% respectively, while Binance Coin (BNB) traded flat. Among meme tokens, Dogecoin edged up 0.3% and the Trump‑themed token $TRUMP rose 1.7%.
The report was contributed by Vahid Karaahmetovic and published by Reuters on 15 July 2026.