Crypto Market Sees Broad-Based Rally on Lower US Inflation

The crypto market is showing signs of strength after a difficult period, with investors getting a welcome break. The latest US inflation report sparked the move, with consumer prices falling 0.4% in June and annual inflation slowing from 4.2% to 3.5%. This eased fears that the Federal Reserve would raise interest rates soon.

Bitcoin led the recovery, climbing around 3.6% and approaching $64,800. Ethereum performed even better, gaining about 5.3% and moving close to $1,880. XRP rose around 3.7%, while Solana added roughly 3.6%. The move was broad-based, with many major altcoins following Bitcoin higher.

Several factors are contributing to the rally. Weaker US inflation reduced the pressure on the Federal Reserve to raise interest rates, making cash and government bonds less attractive. Lower expected rates also encouraged investors to consider assets with greater risk and potential reward.

Fresh inflows into Bitcoin and Ethereum ETFs created direct market demand, while rising prices forced some bearish traders to buy back assets to close losing positions. This added momentum and helped the gains spread into altcoins.