Crypto Rallies on Cooler Inflation, Feds' Rate Hike Fears Ease

Crypto markets surged on Monday following better-than-expected inflation data, with Ethereum rising 6.1% and Bitcoin climbing 3.8%. The drop in inflation suggests the Federal Reserve may not hike interest rates soon, which is favorable for speculative assets like Bitcoin.

The US government transferred $288 million in seized crypto to Coinbase without negatively impacting market prices, indicating institutional confidence. New Hampshire's new crypto legislation introduces protections for users and miners, reflecting incremental regulatory progress.

Crypto traders are betting on the slowdown of growth winning out over inflation concerns, which would lead to rate cuts by year-end. If Bitcoin holds above $63K and Ethereum clears $1,850 convincingly, it could confirm this wasn't just a relief rally.