Bitcoin Approaches the $65,000 Mark: Altcoins Follow Suit

Bitcoin (BTC) price has approached the $65,000 mark as interest rate hike expectations weakened following lower-than-expected inflation data from the US.

Cryptocurrency markets are experiencing one of the most volatile days of the week following positive signals from the US economy. The fact that Consumer Price Index (CPI) data came in below expectations strengthened investors’ belief that the pressure on the US Federal Reserve (Fed) has eased. This situation increased risk appetite, allowing the leading cryptocurrency to climb as high as the $64,800 level.

According to June data, while headline inflation fell from 4.2% to 3.5%, core inflation, which excludes food and energy items, dropped to 2.6%. Following the data, the probability of an interest rate hike this month showed a sharp decline from 43% to 13% in the markets. The softening of the tight monetary policy stance represented by the Fed paved the way for investors to turn toward crypto assets instead of bonds offering guaranteed returns.

Bullish Wave in the Cryptocurrency Market

While Bitcoin (BTC) gained 3.6% in the last 24 hours, the positive mood in the market also reflected on altcoin groups. Ethereum (ETH) rose by 5.3% to reach the $1,880 level, while Solana (SOL) gained 3.6% and XRP (XRP) gained 3.7%. Among the popular meme coin assets, Dogecoin (DOGE) accompanied this rally with a 2.9% increase.

Experts state that Bitcoin is still acting as a risk asset sensitive to interest rates. The fact that core inflation is still above the 2% target keeps the possibility that the bank will maintain current rates rather than cutting them on the table. At this point, the FOMC meeting in September and the continuity of exchange-traded fund (ETF) inflows stand out as the most critical factors that will determine the future direction of the market.