Bitcoin Surges Past $64K on Cooling US Inflation Data

Bitcoin (BTC) surged to $64,703 on July 14, its best move in weeks, following a sharp drop in US inflation data. The June CPI report showed headline inflation cooled to 3.5% from 4.2%, while core inflation eased to 2.6% from 2.9%. This decrease in inflation takes pressure off the Federal Reserve to raise interest rates, which is beneficial for Bitcoin and other risk assets.

The odds of a rate hike this month fell from 43% to just 13% after the data release, causing a drop in the 2-year Treasury yield by six basis points. This move away from higher interest rates typically hurts BTC, but with lower rate hike odds, money tends to flow back into riskier bets like cryptocurrency.

Bitcoin was not alone in its price increase, as Ether (ETH) jumped 5.1% to near $1,870, XRP rose 3.3% to $1.10, Solana gained 3.8% to $77.80, and BNB added 1.5% to $579.