Bitcoin stood firm near $118,000 in Asian trading on Wednesday, buoyed by the latest U.S. Consumer Price Index data that hinted at a cooling inflation trend. This has sparked chatter about a potential interest rate cut by the Federal Reserve come September—a move that could send waves through the crypto market.
Market Gains Amid CPI Revelations
The release of June’s CPI figures, showing a mere 0.1% increase in the core index for the fifth month running, has been a catalyst for optimism among crypto enthusiasts. The subdued inflation data suggests that the Fed might ease its monetary policy sooner rather than later, potentially unlocking a fresh wave of investment into digital assets. Eugene Cheung, OSL’s chief commercial officer, noted, “The data was bullish for crypto, as the Fed may be more likely to cut interest rates in September, potentially triggering more capital to flow into the crypto industry.”
Bitcoin’s resilience amid this backdrop is noteworthy, especially as traditional equities wavered following the failure of the GENIUS Act to pass a procedural vote. “Bitcoin’s price held up well as a testament to traders’ optimism,” Cheung added, hinting at the market’s buoyant mood despite legislative hiccups. For more on Bitcoin’s recent performance, see our article on Bitcoin’s surge past $122K.
Ethereum and Dogecoin Riding the Wave
Ethereum also benefitted from the current market sentiment, reclaiming the $3,100 mark. This surge is partly driven by inflows into spot ETFs and the passage of a new stablecoin bill, which reinforces ETH’s foundational role in the ecosystem of tokenized assets. As detailed in our recent coverage, Ether and Dogecoin have been leading crypto gains, signaling a ‘prime’ breakout chance for the market.
Meanwhile, Dogecoin, that perennial darling of meme-coin aficionados, saw a 2.7% increase, pushing its weekly gain to an impressive 15%. The community-driven token continues to capture interest, trading near 19 cents amid the broader market rally.
Institutional Flows and Market Dynamics
Institutional interest remains a steadfast pillar of the current crypto narrative. U.S. spot bitcoin ETFs marked their ninth consecutive day of net inflows, with a substantial $403 million added on Tuesday alone. Notably, BlackRock’s IBIT captured $416 million in new funds, effectively compensating for outflows from other funds like GBTC and ARKB. Similarly, spot ether ETFs enjoyed their eighth straight day of positive inflows, with $192 million added, underscoring the growing institutional appetite for crypto assets.
Yet, while crypto markets ride this wave of optimism, the broader economic landscape remains less certain. Asian markets and U.S. equity futures took a dip as traders recalibrate their expectations for rate cuts. Dallas Fed President Lorie Logan highlighted a cautious stance, suggesting that rate stability might be necessary unless labor markets or inflation show further signs of weakness.
Looking Ahead: The Bull Run’s Path
Despite the temporary legislative setbacks and uncertain macroeconomic signals, crypto traders are looking beyond the immediate noise. Nick Ruck, director at LVRG Research, expressed confidence in the market’s trajectory, stating, “Despite a temporary setback for the GENIUS Act, Bitcoin has been able to maintain a solid position at around $118,000. We remain positive that the current bull run still has much runway left to see higher prices in the second half of the year.”
As July progresses, all eyes will be on the Fed’s next moves and the ongoing legislative developments that could further shape the crypto landscape. The question on many minds: Can this bullish momentum be sustained, or will new challenges emerge to test the market’s resolve? Only time will tell.
Source
This article is based on: Ether, Dogecoin Lead Modest Market Gains, Bitcoin Holds $118K as CPI Print Fuels Rate Cut Bets
Further Reading
Deepen your understanding with these related articles:
- Crypto ETF Investors Want ‘Ethereum Over Bitcoin’ Amid Surging Demand: CoinShares
- Bitcoin Tops $111K, on Brink of Breaking Record High; Ether’s 6% Jump Leads Major Cryptos
- Ethereum Is Already Outperforming Bitcoin In July, Is Altcoin Season Here?
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
