US Inflation Eases, Bitcoin Nears Three-Week High
Bitcoin strengthened in the US session on Wednesday (July 15th) after lower-than-expected US inflation data eased market concerns about an imminent Fed interest rate hike. In the latest update, Bitcoin was trading around US$65,285, with a daily high of US$65,486 and a low of US$63,580.
Bitcoin's rise occurred after the latest US CPI and PPI data showed inflationary pressures were easing. This led market participants to reduce bets that the Fed would raise interest rates this month. For riskier assets like crypto, expectations of lower interest rates are usually a positive sentiment, as pressure on the dollar and yields is reduced.
However, the crypto rally is not entirely free from risks. The US-Iran conflict remains a major concern after the United States launched another attack on Iran and imposed a naval blockade on Iranian ports. These tensions have also pushed up oil prices, with Brent hovering around US$84.91 per barrel and WTI around US$79.60 per barrel.
Oil risks are important because rising energy prices could trigger inflation again. If inflation flares up again in the coming months, the Fed could potentially maintain a tighter stance for longer. This is what is holding back Bitcoin's rise, even though the latest CPI gives the market some breathing room.
In the altcoin market, movement has also strengthened, following Bitcoin. Ethereum is around US$1,624.95, Solana US$77.97, XRP US$1.059, BNB US$583.30, Dogecoin US$0.0749, and Cardano US$0.1681.
As for the market, Bitcoin still has the opportunity to maintain momentum as long as it remains above the US$64,800–US$65,000 area. However, for a stronger rally, the market is still awaiting confirmation of the direction of Treasury yields, comments from the Fed Chair, and developments in the conflict in the Strait of Hormuz. So, while CPI and PPI are indeed Bitcoin's main fuel today, oil and geopolitical risks remain major brakes on the crypto market. (arl)
Source: Newsmaker.id
