Bitcoin climbed toward $65,000 on July 14 after June consumer prices fell more than expected. The report eased immediate concerns about a Federal Reserve rate increase. Renewed tensions with Iran pushed oil prices higher and capped further gains.
The Labor Department reported that the consumer price index declined 0.4 percent in June, its largest monthly drop since April 2020. Annual inflation slowed to 3.5 percent from 4.2 percent in May, below forecasts for 3.8 percent. Core CPI, excluding food and energy, was unchanged for the month and rose 2.6 percent year over year.
Bitcoin rose as high as $64,832 shortly after the data release, gaining roughly 4 percent from its intraday low. The move brought the cryptocurrency within $200 of the $65,000 level it has struggled to clear in recent weeks. Traders also noted accumulation by wallets holding between 10 and 10,000 BTC.
Fed Chair Kevin Warsh told Congress the same day that the report was only one data point and did not represent mission accomplished. He reaffirmed the central bank's commitment to restoring price stability. The benchmark rate remained at 3.5 percent to 3.75 percent.
Escalating US-Iran conflict reversed earlier energy price declines. Brent crude climbed above $87 per barrel while West Texas Intermediate reached $80.53. Analysts said higher fuel costs could push inflation higher again in coming months and limit Bitcoin's advance above $65,000.
