Bitcoin climbs to $63,400 after U.S. June CPI misses forecasts

Bitcoin rose back above $63,000 and Ethereum climbed roughly 6% toward $1,880 after softer-than-expected U.S. June inflation data bolstered risk appetite and renewed expectations that the Federal Reserve could avoid near-term rate increases. Consumer prices fell 0.4% on the month and annual CPI slowed to 3.5% from 4.2%, the first pullback in the annual inflation rate since January, as lower energy and gasoline prices offset increases in categories such as shelter and food. The June reprieve was helped by easing oil prices after a mid-June U.S.-Iran ceasefire, with crude falling from more than $90 a barrel to roughly $73 by month-end, but economists cautioned that renewed hostilities and a potential disruption to the Strait of Hormuz could quickly rekindle inflation pressures and raise the odds of Fed tightening. Bitcoin reclaimed roughly $63,400 and Ethereum was trading around $1,871 at publication with 24-hour volume of $12.1 billion and a market cap near $227 billion, as major tokens advanced and Treasury yields eased. CoinGlass data previously showed $60.21 million in crypto positions were liquidated within one hour of the release, including $56.27 million in shorts, underscoring how the inflation surprise amplified the move. Federal Reserve Chair Kevin Warsh, testifying before Congress the same day, said the Fed has “no tolerance for persistently high inflation” and that “underlying inflation is determined by monetary policy,” while describing the labor market as “broadly stable.” Markets are now focused on whether cooling price pressures can continue into the July 28-29 FOMC meeting and beyond, or whether renewed Middle East tensions push energy costs and inflation higher again.