Bitcoin bounced from a session low of $63,252 to touch $65,040 after U.S. inflation data showed a cooling in consumer prices. The Personal Consumption Expenditures index fell to an annual 3.7%, easing fears that the Federal Reserve would tighten monetary policy further. Despite this, geopolitical tensions between the U.S. and Iran kept traders cautious, pushing investors toward safer assets like gold and silver.
Crypto Market Reacts to Inflation Numbers
The latest PCE report from the U.S. Bureau of Economic Analysis revealed headline inflation dropped slightly from May’s 4.1% to 3.7%, while core inflation excluding food and energy edged down to 3.3%. These softer figures relieved some pressure on the Fed to hike interest rates, which usually weighs on risk assets such as cryptocurrencies.
Bitcoin's 1.2% gain brought it close to the $65,000 mark, recovering from earlier losses that day. Ethereum also climbed 1.3% to near $1,928. Binance Coin outpaced both with a 3.3% rise to $587, while Solana increased 1.6% to $74.64. Other large-cap altcoins like XRP and TRON posted modest gains, but Dogecoin remained flat, signaling cautious investor sentiment toward speculative tokens.
Market Dynamics Amid U.S. Iran Tensions
As crypto markets edged higher, the broader risk-off mood persisted due to renewed conflict between the U.S. and Iran. This geopolitical strain lifted the appeal of traditional safe havens, with gold and silver prices climbing alongside cryptocurrencies. The total crypto market cap reached $2.30 trillion, with Bitcoin dominance steady at 56.6% and Ethereum holding 10.1%.
The resilience of cryptocurrencies amid rising global tensions shows how investors balance risk and opportunity. While softer inflation data suggests a more patient Fed, external uncertainties continue to shape market behavior and asset flows.
This content is for informational purposes and does not constitute financial advice.
