Bitcoin News Today: Crypto Market Surges 6% After June CPI Data

Trader Eugene, a prominent figure in the cryptocurrency community, recently shared an update on his trading strategy amidst the volatile market conditions. In a post, he revealed that the recent surge in Ethereum (ETH) prices had triggered a series of his pre-set "stair-step sell orders," which were designed to capitalize on the upward momentum while managing risk.

Eugene's strategy involved placing multiple sell orders at incremental price levels, allowing him to take profits as the price of ETH rose. This approach is common among traders who aim to lock in gains without missing out on further price increases. The fact that these orders were triggered indicates that ETH experienced a significant and sustained price increase, validating Eugene's bullish outlook on the asset.

Eugene's prediction of a market breakthrough on July 7th was accurate, as the crypto market saw a notable surge following the release of the U.S. Consumer Price Index (CPI) data for June. The data showed a modest rise in prices, largely in line with market expectations, which fueled hopes for a potential Federal Reserve rate cut in September. This news sparked a rally in the crypto market, with Bitcoin and major altcoins leading the charge.

Prior to the CPI data release, Bitcoin had dipped below $116,000 but quickly recovered, climbing above $118,000 following the report. This pattern of a pre-release dip followed by a post-release rally is not uncommon for Bitcoin, as traders often adjust their positions in anticipation of key economic data. The June CPI data revealed that headline inflation reached 2.7% year over year, slightly higher than May’s 2.4%. Core inflation, which excludes food and fuel, came in at 2.9%, just under market forecasts. These figures provided some relief to investors, suggesting that price increases weren’t sharp enough to deter the Fed from considering a rate cut.

The market reacted swiftly to the CPI data, with crypto prices rising across the board. Ethereum, in particular, saw a significant jump, rising by more than 6% over the past 24 hours. Other major altcoins, including XRP, Binance Coin (BNB), Solana, and Dogecoin, also moved up. This broad-based rally indicates that the positive sentiment surrounding the CPI data extended to the entire crypto market, not just Bitcoin.

Eugene Cheung, chief commercial officer at OSL, viewed the latest figures as a positive signal for digital assets. He noted that the likelihood of a Fed rate cut in September could attract more capital into the crypto market. This outlook is supported by strong inflows into U.S. spot Bitcoin ETFs and Ethereum funds. Monday recorded one of the largest single-day inflows into U.S. spot Bitcoin ETFs in three months, with over 7,500 BTC added. The momentum continued into Tuesday with an additional 3,400 BTC. Ethereum funds also had a strong showing, with inflows totaling $192 million, marking eight straight days of gains.

Despite the rising prices, investors remain cautious, awaiting more data to clarify inflation’s path. While the June CPI report offered some reassurance, uncertainty lingers about how the Federal Reserve will act at its July FOMC meeting. Market odds still lean toward a rate cut in September, but the next key data release—the Producer Price Index (PPI)—could shift market expectations. If the PPI reports inflation below predictions, Bitcoin could gain momentum and lift the broader crypto market. However, if the PPI shows stronger inflation, prices may pull back.

For now, the broader trend remains upward. Bitcoin has held steady through recent swings, and momentum is slowly building again. However, much depends on how the next economic reports unfold. Nick Ruck, director at LVRG Research, sees more room for prices to grow. He believes the current rally still has momentum and expects stronger gains in the second half of the year. This view aligns with analysts who remain among the most bullish, suggesting that if market conditions stay supportive, Bitcoin could reach as high as $200,000 before the year ends.