Bitcoin Sentiment Shifts as Inflation Drops and Capital Flows Turn Positive

A recent drop in inflation and cooling energy prices have led to a shift in investor sentiment, with capital flows into Bitcoin (BTC) and Ether (ETH) turning positive.

The June Consumer Price Index fell 0.4% from the previous month, bringing annual inflation down to 3.5%, the steepest monthly drop since 2020.

This has sparked hopes that the US Federal Reserve may delay interest rate hikes, leading to a positive response in both crypto and equity markets.

The recent uptick in capital flows into BTC and ETH spot, futures, and ETF markets suggests traders are becoming more optimistic about the future of the market.