Bitcoin Climbs to $65,500 as Cooler US Inflation Data Fuels Three Week High

Bitcoin reached its highest level since June 22 today after fresh US inflation data came in below expectations for the second consecutive day, lifting sentiment across risk assets.

Producer Price Data Surprises to the Downside

Bitcoin touched $65,502 following the release of June’s Producer Price Index, which showed a cooler- expected annual rise of 5.5% alongside a 0.3% monthly decline.

Bureau of Labor Statistics data attributed the drop mainly to falling prices for final demand goods, even as service prices ticked slightly higher. Economist Mohamed El-Erian said the figures should support equities and further ease expectations for future rate hikes.

Back-to-Back Cool Inflation Reports

Wednesday’s PPI reading followed Tuesday’s softer Consumer Price Index print, both arriving despite ongoing macro pressure from the US-Iran conflict and its effect on oil prices. Trading resource The Kobeissi Letter noted that inflation expectations continue trending lower, pointing to related prediction market bets. Data from CME Group’s FedWatch tool also showed a shift in September rate expectations, with a hike no longer seen as the most likely outcome.

Traders Stay Cautious on Further Upside

Despite the rally, market participants avoided overly bullish predictions. Traders pointed to liquidity clusters near $65,600 and $67,200 as key levels to watch, saying a break above the higher mark could open the path toward $70,000 and put bitcoin more firmly in the middle of its broader $60,000 to $80,000 trading range.