Bitcoin News Today: U.S. Inflation Surges 2.7% Year-Over-Year Bitcoin Rises 1.91%

In June 2025, the U.S. Consumer Price Index (CPI) rose to 2.7% on a year-over-year basis, marking the highest inflation rate since February. This increase was driven by rising costs in food, transportation, and used vehicles, indicating that price pressures are more persistent than initially anticipated. Despite a decline in energy prices, the pace of this decline slowed significantly, with gasoline and fuel oil still falling but at a lesser rate than before. Core inflation, which excludes volatile food and energy prices, also edged higher year-over-year, reinforcing concerns about sticky inflation. In response, markets turned cautious, with the U.S. Dollar Index climbing 2.1% to reach 98.5 in July.

Bitcoin, the world's largest cryptocurrency, saw a notable uptick following the release of the U.S. inflation data. The price of Bitcoin surged from $115.73 to $118.99, marking a 1.91% increase over the past 24 hours. This price movement reflects growing optimism among investors, likely fueled by cooling inflation and a softer-than-expected core CPI. Data from IntoTheBlock revealed that a substantial 97.14% of Bitcoin holders were “in the money,” indicating their holdings were currently valued above their initial purchase price. In contrast, only 0.57% of holders were “out of the money,” highlighting minimal downside pressure in the market. The Bulls and Bears indicator by IntoTheBlock recorded a slight dominance of bulls — 111 versus 110 bears, suggesting a narrow but notable tilt toward buying interest. Together, these indicators reflect a cautiously optimistic market outlook, hinting at the potential for continued upward momentum in Bitcoin’s price action.

Back in May, when the CPI data was about to be released, the broader crypto market, including Bitcoin, was experiencing a period of stagnation and uncertainty. Investors took a wait-and-watch approach, holding back from aggressive moves amid speculation around upcoming inflation data. This caution showed in Bitcoin’s volatility, which dropped to 200 ATR, signaling a quieter trading environment. Despite rising inflation, the crypto market now shows growing confidence in Bitcoin’s ability to handle pressure, treating it as more than just a risky asset and increasingly as a serious player in the financial system.

The June CPI data release sent ripples through global markets, including the cryptocurrency sector. Initially, Bitcoin dropped nearly 6%, falling from a recent peak of $123,300 to around $116,227. This decline was driven by investors adjusting their expectations regarding the Federal Reserve's next policy move. Just a week prior, the odds of a rate cut in September were over 80%, but these odds dropped to 60% following the CPI release. The sudden shift in expectations spooked risk markets, with Bitcoin, being one of the most rate-sensitive assets, responding immediately. Analysts noted that Bitcoin underwent short-term liquidation following a series of breakouts. Key support levels to watch were identified at $117,000–$116,300. If this zone held, a rebound was possible; however, if support broke, the next key level lay at $110,500. The volatility in Bitcoin's price was further exacerbated by political uncertainties surrounding the Federal Reserve. There were growing talks about a potential shake-up at the Fed, with some analysts warning that such a move could trigger significant market volatility.

Higher inflation typically keeps interest rates higher for longer, which can lead to money flowing back into safer, yield-bearing assets like bonds, and out of high-risk bets like Bitcoin, Ethereum, and other altcoins. While the June CPI numbers did not exceed expectations, they served as a reminder that the path ahead for the crypto market would not be smooth. With less chance of near-term easing and rising political noise, the crypto market could remain on edge in the coming weeks.