Key Moments
- Bitcoin advanced 3% to $64,707.1, briefly reaching $65,340, its highest level since June 22.
- Softer-than-expected U.S. CPI data eased immediate Federal Reserve rate hike concerns but did not remove longer-term tightening risks.
- Escalating U.S.-Iran military tensions lifted oil prices and curbed further upside across the cryptocurrency market.
Macro Easing Supports Bitcoin
Bitcoin traded higher on Wednesday, touching its strongest level in three weeks after fresh U.S. inflation figures came in weaker than anticipated, tempering fears of an imminent interest rate increase.
By 06:39 ET (10:39 GMT), Bitcoin was up 3% at $64,707.1, having briefly climbed to an intraday peak of $65,340 – a level last seen on June 22.
The move extended Tuesday’s upswing, as the softer U.S. consumer price index reading reduced expectations that the Federal Reserve would soon move to hike rates. Elevated borrowing costs had recently pressured cryptocurrencies and other non-yielding, speculative assets by raising the relative appeal of government debt.
Rate Path Still Uncertain Despite Softer CPI
Despite the initial relief, investors remained cautious about the longer-term interest rate trajectory. In his first appearance before Congress, Fed Chair Kevin Warsh reaffirmed the central bank’s dedication to achieving its 2% annual inflation goal.
Warsh’s remarks, alongside earlier hawkish signals from other Fed policymakers, suggested that the Fed continued to lean toward a tightening stance. Market participants were particularly wary that a renewed upswing in U.S. inflation – especially if driven by fresh oil supply disruptions in the Middle East – could revive concerns about further rate hikes.
Escalating U.S.-Iran Conflict Weighs on Risk Assets
Cryptocurrency gains were also capped by ongoing geopolitical tensions. The U.S. and Iran exchanged strikes in the early hours of Wednesday, with the latest round of military actions showing limited signs of de-escalation.
U.S. President Donald Trump said his administration had been in contact with Iran on Tuesday, but warned that strikes against the country will continue and potentially escalate until a deal is reached.
Iran responded to U.S. aggression with missile and drone attacks targeting several neighboring Gulf states that host U.S. bases. Tehran also sustained pressure on maritime traffic in the Strait of Hormuz and cautioned that it could disrupt other critical shipping lanes in the region.
These developments pushed oil prices higher and kept markets alert to the possibility of an energy-driven rebound in inflation, further complicating the outlook for risk assets such as cryptocurrencies.
Broad Crypto Market Rebounds With Bitcoin
The wider digital asset market strengthened on Wednesday, recovering part of its recent pullback. However, many tokens remained significantly lower for the year, amid reduced institutional and retail engagement and a shift of capital toward artificial intelligence-related equities.
| Asset | Move | Price |
|---|---|---|
| Bitcoin | +3% | $64,707.1 (intraday high $65,340) |
| Ether | +4.4% | $1,878.86 |
| XRP | +3.4% | $1.1076 |
| Solana | +2.5% | – |
| Cardano | +3.6% | – |
| BNB | +1.3% | – |
| Dogecoin | +2% | – |
| $TRUMP | +2.3% | – |
Major altcoins advanced alongside Bitcoin. World no.2 crypto Ether climbed 4.4% to $1,878.86, while XRP added 3.4% to $1.1076. Solana and Cardano rose 2.5% and 3.6%, respectively, and BNB increased 1.3%.
Among memecoins, Dogecoin was up 2%, and $TRUMP gained 2.3%.
Vahid Karaahmetovic contributed to this report.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
