Bitcoin Holds Strong Near $118K as CPI Data Fuels Rate Cut Bets

Bitcoin (BTC) hovered near $117,800 during Asian trading hours Wednesday, consolidating gains as June’s U.S. CPI report showed continued disinflation. The core Consumer Price Index rose just 0.1% month-over-month for the fifth consecutive time, boosting expectations of a potential Federal Reserve rate cut in September. This triggered renewed bullish sentiment in crypto markets despite broader equity market softness.

Eugene Cheung, chief commercial officer at OSL, noted the data was “bullish for crypto,” as lower interest rates could drive more capital into digital assets. Bitcoin’s resilience, despite the GENIUS Act’s failure to pass a procedural vote, reflected trader optimism. Lawmakers are expected to revisit the bill soon.

Ether (ETH) rebounded past $3,100, supported by steady ETF inflows and momentum from a recently passed U.S. stablecoin bill, strengthening Ethereum’s role in tokenized dollar infrastructure. Dogecoin (DOGE) climbed to $0.1971, up 2.7% on the day and nearly 15% for the week. Solana (SOL) held firm at $163, XRP hovered around $2.92, BNB traded near $688, and TRON (TRX) remained flat at 3 cents.

Institutional flows into crypto stayed strong. U.S. spot bitcoin ETFs marked a ninth consecutive day of net inflows, with $403 million added Tuesday. BlackRock’s IBIT led with $416 million in inflows, offsetting outflows from GBTC, FBTC, and ARKB. Spot ETH ETFs also attracted $192 million in inflows, extending their own eight-day streak.

While global equities edged lower on cautious Fed commentary, crypto investors appeared undeterred. LVRG Research’s Nick Ruck said Bitcoin’s stability near $118,000 suggests “the current bull run has more room to grow” in the second half of 2025.