Bitcoin News Today: Bitcoin Holds $118,000 as CPI Data Boosts Rate Cut Hopes

Bitcoin maintained its position near $118,000 during Asian trading hours on Wednesday, following the release of June’s U.S. Consumer Price Index (CPI) data. The data indicated further disinflation, leading traders to adjust their expectations for a September Federal Reserve rate cut. This adjustment in expectations has bolstered bullish sentiment across crypto markets, despite broader equity market weakness.

Core CPI rose by just 0.1% month-over-month for the fifth consecutive month, contributing to the positive sentiment. This data has been interpreted as a sign that the Federal Reserve may be more inclined to cut interest rates in September, potentially driving more capital into the crypto industry. Eugene Cheung, chief commercial officer of OSL, noted that the data was bullish for crypto, as it increased the likelihood of a rate cut, which could attract more investment into the sector.

Bitcoin’s price resilience was seen as a testament to traders’ optimism, even as some crypto stocks dropped following the failure of the GENIUS Act to pass a procedural vote. The GENIUS Act, which aims to provide regulatory clarity for the crypto industry, will continue to be refined by lawmakers for another vote. Despite this setback, Bitcoin has managed to hold its position, indicating strong underlying support.

Ether (ETH) experienced a rebound, reclaiming the $3,100 level. This rebound was driven by inflows into spot ETFs and the passage of a new stablecoin bill, which reinforces ETH’s role as a base layer for tokenized dollars. The stablecoin bill is seen as a positive development for the crypto industry, as it provides a regulatory framework for stablecoins, which are a key component of the crypto ecosystem.

Dogecoin (DOGE) was trading near 19 cents, delivering a modest 2.7% daily climb and extending its weekly gain to roughly 15%. Solana’s SOL remained steady at $163, while XRP traded near $2.92, reflecting steady interest. BNB traded around $688, holding onto recent gains, and TRON’s TRX remained flat at about 3 cents.

Institutional interest in cryptocurrencies remained strong, with significant inflows into U.S. spot bitcoin and ether ETFs. U.S. spot bitcoin ETFs logged their ninth consecutive day of net inflows, with $403 million added on Tuesday. BlackRock’s IBIT alone saw $416 million in new funds, more than offsetting $70 million in combined outflows from GBTC, FBTC, and ARKB. Spot ether (ETH) ETFs also posted $192 million in inflows, their eighth straight positive day.

Despite a temporary setback for the GENIUS Act, Bitcoin has been able to maintain a solid position at around $118,000. Nick Ruck, director at LVRG Research, remains positive that the current bull run still has much runway left to see higher prices in the second half of the year. This optimism is shared by many in the crypto community, who see the recent data and developments as positive signs for the industry’s future.