Bitcoin and Ether rally after cooler-than-expected US inflation data reduces expectations of a Federal Reserve rate increase.
Bitcoin climbed nearly 2% to trade above $65,000 on Wednesday, while Ether rose 3%, driven by a shift in macroeconomic sentiment. The June Consumer Price Index came in softer than anticipated, easing concerns over potential Federal Reserve rate hikes that could tighten liquidity conditions for risk assets.
Ether has outperformed Bitcoin over the past five days, rising 7% compared to Bitcoin’s 2% gain. Analysts note Ether’s historical tendency to lead broader crypto recoveries, as seen during the 2022 bear market when it began outperforming Bitcoin months before the market bottomed.
Investors are also monitoring the potential passage of the Clarity Act, a key crypto market regulation. While prediction markets suggest a 30%-40% chance of passage this year, some analysts estimate the probability closer to 50%, which could further support digital asset prices.