Bitcoin (BTC) hovered near $118,000 during the Asian trading hours on Wednesday, consolidating gains after June’s U.S. CPI data signaled further disinflation, pushing traders to reprice odds of a September Fed rate cut.
Core CPI rose just 0.1% month-over-month for the fifth straight time, fanning bullish sentiment across crypto markets despite broader equity weakness.
“The data was bullish for crypto, as the Fed may be more likely to cut interest rates in September, potentially triggering more capital to flow into the crypto industry,” said Eugene Cheung, chief commercial officer of OSL.
“Bitcoin’s price held up well as a testament to traders’ optimism, despite some crypto stocks dropping after the GENIUS Act failed to pass a procedural vote, which will continue to be refined by lawmakers for another vote,» Cheung added.
The data sparked a rebound in ether (ETH) which reclaimed the $3,100 level amid inflows into spot ETFs and tailwinds from a newly passed stablecoin bill, seen as reinforcing ETH’s role as a base layer for tokenized dollars.
Dogecoin (DOGE) was sitting near 19 cents, delivering a modest 2.7% daily climb and extending its weekly gain to roughly 15%.
Solana’s SOL (SOL) remains steady at $163, while XRP (XRP) trades near $2.92, reflecting steady interest. BNB (BNB) trades around $688, holding onto recent gains, and TRON’s TRX (TRX) remains flat at about 3 cents.
Institutional flows remained strong. U.S. spot bitcoin ETFs logged their ninth consecutive day of net inflows, with $403 million added Tuesday. BlackRock’s IBIT alone saw $416 million in new funds, more than offsetting $70 million in combined outflows from GBTC, FBTC and ARKB, according to SoSoValue.
Spot ether (ETH) ETFs also posted $192 million in inflows, their eighth straight positive day.
In the macro backdrop, Asian markets slipped and U.S. equity futures dipped as traders reassessed the pace of potential rate cuts. While some firms are reportedly passing tariff-related costs to consumers, Fed officials remain cautious. Dallas Fed President Lorie Logan noted that the central bank may still need to hold rates steady unless labor markets or inflation weaken further.
Still, crypto traders appear to be looking past short-term policy noise.
“Despite a temporary setback for the GENIUS Act, Bitcoin has been able to maintain a solid position at around $118,000” said Nick Ruck, director at LVRG Research. “We remain positive that the current bull run still has much runway left to see higher prices in the second half of the year.”
Read more: U.S. June CPI Rose an In Line 0.3%; Core Rate Slightly Better Than Hoped at 0.2%