Cooling Inflation Lifts Cryptocurrencies

WASHINGTON (dpa-AFX) - Lower-than-expected readings of consumer price and producer price inflation released from the U.S. has boosted sentiment in cryptocurrency markets. Resumption of inflows to U.S.-listed Bitcoin Spot ETF products on Tuesday also boosted sentiment. Overall cryptocurrency market capitalization has rallied more than 2 percent in the past 24 hours. Bitcoin, the leading cryptocurrency has touched a 24-hour high of $65,508.Data for June released on Tuesday morning by the U.S. Bureau of Labor Statistics showed annual headline inflation declining to 3.5 percent from 4.2 percent at the end of the previous month. Markets had expected it to fall to 3.8 percent only. The core component thereof, excluding the volatile food and fuel component which was expected to decline to 2.8 percent from 2.9 percent in May actually dropped to 2.6 percent. Markets which had expected the monthly headline inflation to record -0.1 percent saw it slip to -0.4 percent, versus 0.5 percent at the end of previous month. The core component thereof which was expected to remain steady at 0.2 percent witnessed flat prices.Data for June released on Wednesday morning by the U.S. Bureau of Labor Statistics showed producer price inflation at -0.3 percent versus a downwardly revised 0.6 percent in the previous month. Markets had expected prices to remain flat.The softening in price pressures has mellowed rate hike expectations from the Federal Reserve. The CME FedWatch tool shows the likelihood of a rate hike in the July FOMC at 12.3 percent versus 16 percent a day earlier and 31 percent a week earlier. Markets reacted positively to the ebbing rate hike expectations, lifting aggregate crypto market capitalization by 2.1 percent in the past 24 hours to $2.24 trillion. More than 40 of the top 100 cryptocurrencies are trading with overnight gains of more than a percent whereas only around 15 are trading with overnight losses of 1 percent or more. The surge in overall crypto market capitalization was also accompanied by a 6-percent spike in trading volumes.Diverging from the trend a day earlier, liquidation of short positions has surpassed the liquidation of long positions, implying a short squeeze. Data from Coinglass shows liquidations aggregating to $336 million during the past 24 hours. While short positions liquidated account for $270 million, long positions liquidated add up to $67 million only.Bitcoin (BTC), the largest cryptocurrency is trading 2.4 percent higher at $65,293.21. The current price is around 48 percent below the all-time high of $126,198.07 recorded on October 7, 2025. The original cryptocurrency's year-to-date losses has been restricted to 25.4 percent.Bitcoin Spot ETF products in the U.S. witnessed net inflows of $121 million on Tuesday, a sharp reversal from the net outflows of $425 million on Monday. iShares Bitcoin Trust ETF topped with net inflows of $139 million.Bitcoin is continuing in the 14th position in the global ranking of all assets as per market capitalization published by companiesmarketcap.com. The leading cryptocurrency is juxtaposed between Tesla ranked 13th and Samsung ranked 15th.Ethereum (ETH) is trading 3.5 percent higher at $1,928.00. The leading alternate coin is trading 61 percent below the all-time-high of $4,953.73 recorded on August 25, 2025. The 24-hour trading ranged between $1,944.16 and $1,861.84. Ethereum is still grappling with year-to-date losses of more than 35 percent.Ethereum Spot ETF products in the U.S. witnessed net inflows of $58 million on Tuesday in contrast to the net outflows of $15 million on Monday. iShares Ethereum Trust ETF (ETHA) accounted for the inflows entirely.With the brilliant overnight rally, Ethereum has jumped to the 84th position in the global ranking of all assets as per market capitalization published by companiesmarketcap.com. The leading altcoin was ranked 97th a day earlier.4th ranked BNB (BNB) edged up 0.31 percent overnight resulting in price increasing to $580.62. BNB is trading 58 percent below the all-time high of $1,370.55 touched on October 13, 2025.6th ranked XRP (XRP), a payments-focused cryptocurrency gained 2.1 percent overnight and is currently trading at $1.12, around 71 percent below the all-time high of $3.84 touched on January 4, 2018.The price of 7th ranked Solana (SOL) rallied 1.5 percent overnight to $77.98. SOL's current price is around 74 percent below its all-time-high of $294.33 recorded on January 19, 2025.TRON (TRX) ranked 8th overall added 0.64 percent overnight and is currently changing hands at $0.3271. The trading price is 26 percent below the cryptocurrency's all-time high of $0.4407 recorded on December 4, 2024.9th ranked Hyperliquid (HYPE) jumped 5.9 percent overnight, to trade at $68.40, around 11 percent below the all-time high of $76.85 recorded on June 16.Memecoin Dogecoin (DOGE) ranked 10th overall added 0.93 percent overnight and is currently trading at $0.0746. DOGE is trading 90 percent below the peak price of $0.7376 recorded on May 8, 2021.For More Cryptocurrency News, visit rttnews.comCopyright(c) 2026 RTTNews.com. All Rights ReservedCopyright RTT News/dpa-AFX