Ether, Dogecoin Lead Modest Market Gains, Bitcoin Holds $118K as CPI Print Fuels Rate Cut Bets
Bitcoin’s price hovered near $118,000 during Asian trading on Wednesday, consolidating recent gains fueled by June’s U.S. Consumer Price Index (CPI) data. The data, showing further disinflation, increased market expectations of a September Federal Reserve rate cut. Core CPI’s 0.1% month-over-month rise for the fifth consecutive time boosted bullish sentiment across cryptocurrency markets, despite broader equity market weakness.
This positive market reaction is attributed to the increased likelihood of a Fed rate cut, potentially attracting more capital into the crypto industry, according to Eugene Cheung, chief commercial officer of OSL. Bitcoin’s resilience, even amid the failure of the GENIUS Act to pass a procedural vote, underscores trader optimism. The Act, however, will be refined and re-voted on later.
Ether (ETH) also rebounded, reclaiming the $3,100 level. This surge is linked to inflows into spot ETFs and the recent passage of a stablecoin bill, strengthening ETH’s position as a base layer for tokenized dollars. Dogecoin (DOGE) showed modest gains, climbing 2.7% daily and approximately 15% weekly, trading near 19 cents. Solana (SOL), XRP, BNB, and TRX showed relatively stable performance at $163, $2.92, $688, and approximately 3 cents, respectively.
Institutional investment remained robust. U.S. spot Bitcoin ETFs saw their ninth consecutive day of net inflows, totaling $403 million on Tuesday. BlackRock’s IBIT ETF alone attracted $416 million in new funds, easily offsetting outflows from other funds like GBTC, FBTC, and ARKB. Spot Ether ETFs also reported $192 million in inflows, marking their eighth consecutive positive day.
Despite Asian market dips and cautiousness from some Fed officials like Dallas Fed President Lorie Logan, who highlighted the need for potential rate stability, crypto traders appear focused on the long-term outlook. Nick Ruck, director at LVRG Research, notes Bitcoin’s strong position near $118,000 and expresses continued optimism for further price increases in the second half of the year. The overall market sentiment remains bullish, driven by disinflationary signals and substantial institutional investment.
