Bitcoin Blasts Past $65K as Soft Inflation Ignites Stocks, Gold and Crypto

Bitcoin broke above $65,000 on Wednesday morning at 8:30 a.m. EDT, after a softer-than-expected U.S. producer price report lifted stock futures, crypto, and gold, even as Middle East supply fears kept oil prices near multi-year highs.

The Bureau of Labor Statistics reported the June Producer Price Index (PPI) at 5.5%, below consensus estimates and down from prior readings. Lower producer prices tend to feed into consumer inflation over time. With June CPI already showing signs of moderation, traders viewed the PPI print as another sign the Federal Reserve has room to cut rates later this year. Treasury yields eased slightly, supporting higher valuations for stocks and crypto. The dollar index softened, giving a lift to dollar-denominated assets like gold and bitcoin.

Bitcoin opened the session near $64,989 and pushed as high as $65,494 at 8:30 a.m. EDT on Wednesday, clearing the $65,000 level for the first time in recent sessions. Trading volume stayed heavy through the move, signaling both institutional and retail buyers were active. Bitcoin’s climb tracked the same forces lifting stocks: lower expected borrowing costs and improving liquidity sentiment. Altcoins followed bitcoin’s lead, though bitcoin’s market share remained elevated as investors favored the most liquid token. Bitcoin is up more than 5% this week, while ethereum (ETH) saw a 10% increase over the same period.

U.S. equity futures rose in early trading. S&P 500 futures gained between 0.03% and 0.38%, trading near 7,543 to 7,593. Nasdaq-100 futures climbed 0.24% to 0.90%. Semiconductor stocks led the advance, with Nvidia, AMD, and Broadcom posting solid gains on continued demand for artificial intelligence (AI) infrastructure. Energy stocks traded mixed, with producers benefiting from higher crude prices while airlines and consumer-facing companies faced added cost pressure.

Brent crude traded around $84 a barrel at 8:30 a.m. EDT, while West Texas Intermediate (WTI) held near $79.54. Both benchmarks stayed well above recent averages as tensions between the U.S. and Iran continued. The Strait of Hormuz, which carries roughly 20% of the world’s oil supply, remained the focal point. Reports of military activity and incidents involving commercial tankers pushed up shipping insurance costs and led some vessels to reroute.

Gold traded in a narrow range between $4,050 and $4,064 an ounce, supported by both the rate outlook and demand for a hedge against geopolitical risk. The yellow precious metal was up 0.23% on the day.

The morning hours showed two forces pulling markets in different directions. Cooling U.S. inflation data gave investors reason to expect easier Fed policy, while oil above $85 a barrel and the ongoing war provided reasons for caution. That split kept gains concentrated in chip stocks and bitcoin rather than spreading across the broader market. Traders believe sustained oil prices near current levels could show up in future inflation data, limiting how much room the Fed actually has to cut rates.

Source: https://news.bitcoin.com/bitcoin-blasts-past-65k-as-soft-inflation-ignites-stocks-gold-and-crypto/