Bitcoin rallies to $64,700 as softer US inflation calms rate fears
Bitcoin and major altcoins surged as cooling US inflation reduced expectations for Federal Reserve rate hikes, though analysts warn geopolitical risks could cap further gains.
Bitcoin rose 3.56% to $64,700, leading a broad cryptocurrency rally driven by softer US inflation data that reduced expectations of aggressive Federal Reserve rate hikes. Ethereum gained 5.30% to trade at $1,875, while major altcoins including BNB, XRP, Solana, Tron, Hyperliquid, Dogecoin, and Cardano posted gains of up to 6.42%.
The price action reflects a shift in rate expectations, though market sentiment remains guarded. The crypto fear and greed index stands at just 34, according to the CoinDCX Research Team, indicating that investors are maintaining a cautious stance despite the upside momentum.
Technical thresholds in focus
Market participants are relying on key price levels to gauge market conviction rather than anticipating an immediate breakout in either direction, according to analyst Shetty. Institutional flows and macroeconomic data continue to be the primary drivers of this sentiment.
Riya Sehgal, a research analyst at Delta Exchange, noted that Bitcoin’s two-hour chart structure stays constructive provided the asset holds above the $63,500 to $64,000 zone. A sustained move above $66,000 would reinforce the recovery trend. Conversely, a drop below $63,500 would expose Bitcoin to the $62,900 level.
Ethereum is currently demonstrating stronger relative momentum. Sehgal observed that its breakout above $1,830 keeps the $1,900 level in focus, though a decline beneath $1,805 would invalidate the near-term bullish setup.
Macro risks remain
Looking ahead, the CoinSwitch Markets Desk identified the $66,000 to $67,000 region as the immediate resistance ceiling for Bitcoin. A decisive push through this zone could open a path toward $70,000.
However, analysts warn that several macroeconomic and geopolitical obstacles could prevent that advance. The CoinSwitch Markets Desk cited ongoing Middle East tensions and elevated oil prices as primary risks, noting that a resurgence in energy-driven inflation could limit the market’s upside potential.
Future price direction will also depend on incoming economic indicators. Analyst Subburaj highlighted Wednesday’s US producer-price report, Fed Chair Kevin Warsh’s upcoming Senate testimony, and the July 28-29 policy meeting as the next major catalysts capable of shifting digital asset valuations.
