Bitcoin moved higher on Wednesday, briefly pushing above $65,500 after new U.S. inflation figures came in softer than economists had expected. The jump followed Labor Department data showing that the Producer Price Index fell in June, marking its steepest monthly drop in 14 months. Core producer prices, which exclude food and energy, declined 0.3% during the month, according to Bureau of Labor Statistics figures.
The token was last trading near $64,943, up about 2% over the previous 24 hours. The move fits a familiar pattern for bitcoin and other risk-sensitive assets: when inflation appears to be cooling, traders often start to price in a better chance of interest-rate cuts. Lower rates have historically supported crypto and stocks by making borrowing cheaper and boosting appetite for higher-risk investments.
Inflation Relief Meets Geopolitical Risk
Even with the softer inflation data, bitcoin’s price action remains tied to a wider mix of market pressures. The article notes that tensions in the US-Iran conflict have added fresh uncertainty, with President Trump saying the US would take control over the Strait of Hormuz and warning of intensified bombing if attacks on ships continue. Bitcoin has already seen sharper swings since the US and Israel attacked Iran on February 28, when the cryptocurrency fell on the initial war headlines.
Despite the latest rebound, bitcoin remains under pressure on a longer time frame. Since the beginning of the year, the asset has lost nearly 30% of its value and is still trading close to 50% below the record high of $126,080 set in October. June also brought additional selling pressure as US investors pulled money from spot bitcoin exchange-traded funds, while enthusiasm shifted toward artificial intelligence-related stocks. Traders are now watching how new Federal Reserve Chair Kevin Warsh will approach inflation and interest rates after he told Congress this week that the central bank has “no tolerance for persistently elevated inflation.” At the time of writing, bitcoin is hovering near $65,000.
Source: bitcoinmagazine.com
