- Bitcoin remains firm near $118,000 as U.S. inflation data fuels expectations of a Fed rate cut.
- Ether and Dogecoin lead moderate gains, backed by strong ETF inflows and supportive legislation.
Bitcoin Stays Strong on Fed Rate Cut Hopes
Bitcoin has remained steady near $118,000 following encouraging U.S. inflation data. The June Consumer Price Index (CPI) showed core inflation rising just 0.1% month-over-month for the fifth consecutive time. This continued low inflation suggests the Federal Reserve may consider cutting interest rates as early as September. Consequently, investor optimism in cryptocurrencies has grown.
Eugene Cheung, Chief Commercial Officer at OSL, explained that the inflation data is positive for crypto markets because rate cuts could encourage more capital inflows. Although the GENIUS Act failed a procedural vote, which affected some crypto stocks negatively, Bitcoin’s price held firm. This resilience signals strong trader confidence amid short-term challenges.
Ether Rebounds Above $3,100 with ETF Inflows and Regulatory Support
Alongside Bitcoin’s stability, Ether (ETH) made significant gains by reclaiming the $3,100 level. This rise was largely driven by $192 million in inflows into ether spot ETFs, marking eight straight days of positive institutional investments. Furthermore, a newly passed stablecoin bill strengthened Ether’s position as the base layer for tokenized dollars. Together, these factors provide Ether with robust support despite broader market uncertainties.
Dogecoin and Altcoins Extend Weekly Gains Alongside Bitcoin
Dogecoin (DOGE) also showed strength by rising 2.7% to around $0.20, extending its weekly gains to approximately 15%. Other altcoins such as Solana (SOL) remained steady near $163, while XRP traded close to $2.92. Binance Coin (BNB) held onto recent gains, trading near $688.
Institutional demand remains a key market driver. Bitcoin spot ETFs experienced their ninth consecutive day of net inflows, adding $403 million on Tuesday alone. Notably, BlackRock’s IBIT fund attracted $416 million in new investments, compensating for outflows in other crypto funds.
Traders Stay Optimistic Despite Market Uncertainty
Despite some weakness in equity markets and cautious comments from Federal Reserve officials about future rate cuts, crypto traders continue to look ahead with optimism. Nick Ruck, Director at LVRG Research, noted that Bitcoin’s steady hold near $118,000 suggests the current bull run still has significant potential in the second half of 2025.
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