Inflation cools sharply and the Fed celebrates — Bitcoin rallies toward $65,000
Fresh data shows inflation just took its biggest drop in years, and top Federal Reserve officials are cheering the news and wanting more. Because the pressure is off to raise interest rates, investors are piling into Bitcoin, pushing it toward $65,000.
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June's CPI report showed prices actually falling for the first time in years, largely driven by dropping gasoline costs. Immediately after this data hit, top Federal Reserve officials publicly celebrated the cooler numbers and pushed for even more progress. With inflation cooling rapidly, the Fed has virtually no reason to raise interest rates further, which takes pressure off risky assets like cryptocurrencies. Bitcoin responded instantly by surging toward $64,000, and as long as inflation stays tame, this momentum is likely to continue through the summer.