Bitcoin (BTC) surged toward $64,800 on Wednesday, posting its strongest rally in weeks after U.S. inflation data came in cooler than expected. The June Consumer Price Index (CPI) rose 3.5% year-over-year, down sharply from 4.2% in May, while core CPI—excluding food and energy—slowed to 2.6%, signaling broad-based easing of price pressures. The data quickly doused expectations of further Federal Reserve rate hikes, with the probability of a hike dropping from 43% to 13% immediately after the release.
Bitcoin and altcoins rally as rate hike fears fade
Bitcoin climbed 3.6% over 24 hours and 3.3% on the week, with trading volume reaching about $31 billion. Ethereum (ETH) led major altcoins with a 5.3% gain to around $1,880, while Hyperliquid surged 6.4%, XRP rose 3.7% to $1.10, Solana (SOL) added 3.6%, Dogecoin (DOGE) gained 2.9%, and Binance Coin (BNB) advanced 1.9%. The broad-based rally reflected renewed risk appetite as lower inflation reduced the appeal of safe-haven assets like bonds.
Geopolitical tensions and oil prices add complexity
Despite the positive crypto move, geopolitical risks persisted. Brent crude oil rose above $85 per barrel for a third straight day, driven by President Trump's threat of further strikes on Iran and the U.S. resumption of a blockade on Iranian shipping in the Strait of Hormuz. Oil has surged 11% in the past two trading sessions. Global equities also rallied, with the MSCI Asia-Pacific index jumping 2.3%—its biggest one-day gain in a month—and South Korea's KOSPI soaring 8.2%, led by a 13% surge in SK Hynix.
Analysts: Bitcoin remains rate-sensitive, not a hedge
Jeff Ko, chief analyst at CoinEx, cautioned that Bitcoin still behaves as a rate-sensitive risk asset rather than a macroeconomic hedge. "The CPI data reduces short-term downside pressure but isn't enough to sustain a breakout," he said. With core inflation at 2.6% still above the Fed's 2% target, markets now price in a rate hold rather than a cut. Key catalysts ahead include the September FOMC meeting, dollar trends, and continued inflows into Bitcoin ETFs.