Bitcoin Surges to $65k Amid Cooling US Inflation and Institutional Buying

The price of Bitcoin (BTC) surged to $65,151 after a 3% increase, outperforming the broader cryptocurrency market. This rally was driven by a macro-driven relief move following the release of cooling US inflation data, which eased fears of aggressive Federal Reserve rate hikes.

Traders noted that the decline in headline inflation from 0.4% monthly drop eased concerns about the Fed's need to raise interest rates. As a result, risk assets such as Bitcoin became more attractive.

The June US Consumer Price Index report showed a sharp decrease in inflation, shifting market expectations towards a less hawkish Fed. This shift in sentiment made Bitcoin and other risk assets more appealing.

BlackRock clients purchased $138.9 million worth of Bitcoin on July 15, marking a reversal of recent ETF outflows and indicating renewed institutional confidence.