US PPI inflation fell 0.3% in June, boosting BTC to a three-week high and easing Fed rate hike expectations.
Bitcoin climbed to $65,500, its highest level since June 22, after US Producer Price Index data showed a 0.3% monthly decline in June. The drop in PPI, driven by a 1.4% fall in goods prices, marked the second consecutive day of softer-than-expected inflation readings.
The June PPI rose 5.5% year-on-year, with services prices edging up 0.2%. Tuesday’s Consumer Price Index also undershot forecasts, reinforcing expectations that the Federal Reserve may temper further rate hikes. Economists noted the data could support risk assets, including equities and cryptocurrencies.
Traders remain cautious about Bitcoin’s ability to sustain gains, though the immediate reaction pushed BTC/USD to levels last seen in late June.