The cryptocurrency market is beginning to rally, with significant attention on bitcoin and major altcoins, following the release of U.S. inflation data for June.
Bitcoin Bounces Back After Dip
Before the CPI data was released, bitcoin had slipped below $116,000, but it recovered following the report. Analyst Ali Martinez noted that bitcoin often dips before inflation data is released and then rallies once the report comes out. This week followed that same pattern, with bitcoin climbing above $118,000.
Strong Inflows and Rising Prices Signal Growing Confidence in Crypto
Bitcoin wasn't the only coin moving higher. Ethereum jumped by more than 6% over the past 24 hours. XRP, Binance Coin (BNB), Solana, and Dogecoin also moved up. Eugene Cheung, chief commercial officer at OSL, viewed the latest figures as a positive signal for digital assets, which could attract more capital into the crypto market.
Inflation, Fed Moves, and What’s Next for Bitcoin
Even with prices rising, the market remains cautious, awaiting additional data to clarify inflation's trajectory. While the June CPI report provided some reassurance, uncertainty lingers about how the Federal Reserve will act at its July FOMC meeting.
The broader trend remains upward, and despite fluctuations, bitcoin has held steady. However, much will depend on how upcoming economic reports unfold.
