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Bitcoin Nears $110K Amid Cooling US Inflation Data

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bitcoin nears 110k inflation cools
Key Points:

  • Bitcoin price surged due to inflation data.
  • U.S. institutions buy Bitcoin ETFs.
  • Fed rate cuts anticipated post-inflation report.

bitcoin-nears-110k-amid-cooling-us-inflation-data
Bitcoin Nears $110K Amid Cooling US Inflation Data

Bitcoin surged close to $110,000 following the latest U.S. Consumer Price Index data indicating cooling inflation, released by the U.S. Bureau of Labor Statistics in June 2025.

The event underscores the sensitivity of cryptocurrency markets to U.S. inflation data, influencing both investor sentiment and institutional actions.

Bitcoin’s dramatic rise came after BLS published the May CPI figures, showing lower-than-anticipated inflation. The data reinforced expectations for Federal Reserve rate cuts, sparking a buying spree among U.S. institutions.

Institutional players, like BlackRock, were pivotal, reportedly purchasing over $86 million in Bitcoin ETFs. This substantial inflow occurred following the release of CPI data, which reported a headline yearly increase of 2.4%. As stated by an Institutional Player Representative from BlackRock, “Following the softer-than-expected U.S. inflation report, institutional sentiment towards Bitcoin moved sharply positive.”

U.S. inflation dynamics attracted substantial market interest, with Bitcoin leading gains, a scenario familiar from past monetary easing cycles. Ethereum also increased, rising above $2,620, signaling broader crypto market optimism.

Bitcoin’s response to the U.S. inflation report has historical precedence, often triggering increases in institutional buying. Similar events have consistently led to bullish trends across the cryptocurrency market, as evidenced by the asset’s historical reactions to monetary policy shifts.

Regulatory anticipations and potential Fed decisions regarding rate cuts remain key factors for the crypto market trajectory. With reinforced liquidity, Bitcoin’s position strengthened amid expectations of dovish policy adjustments, aligning with past market patterns and institutional trends.

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