Bitcoin and other major cryptocurrencies moved sharply higher on Wednesday as softer-than-expected U.S. inflation revived demand for risk-sensitive assets and reduced fears that the Federal Reserve could raise interest rates at its next meeting.
Bitcoin rose 2.94 percent over 24 hours to $64,684 at the time of writing, extending its seven-day advance to 4.01 percent. Its daily trading volume reached $30.59 billion, while its market capitalization climbed to $1.35 trillion.
The total cryptocurrency market capitalization increased 2.52 percent over 24 hours to $2.30 trillion, with bitcoin accounting for 56.3 percent of the market.
Despite Wednesday’s recovery, the global cryptocurrency market remained 39.25 percent below its level a year earlier. The comparison indicates that the latest advance has not yet reversed the broader downturn that has weighed on digital assets.
Inflation revives demand
The immediate catalyst came from the U.S. Bureau of Labor Statistics, which reported that the Consumer Price Index fell 0.4 percent month on month in June after increasing 0.5 percent in May.
It was the largest monthly decline since April 2020. Annual inflation slowed to 3.5 percent from 4.2 percent, while the core index, which excludes food and energy, was unchanged from the previous month and rose 2.6 percent year on year.
Both readings were below economists’ expectations. Analysts had forecast headline inflation of 3.8 percent and a core reading of 2.8 percent.
Energy prices declined 5.7 percent during June, with gasoline prices falling 9.7 percent and accounting for much of the moderation in the headline figure.
The data weakened the case for an interest rate increase at the Fed’s July 28–29 meeting. Cryptocurrencies generally benefit when expectations for tighter monetary policy recede, particularly if the dollar and U.S. Treasury yields move lower.
The Federal Reserve left its target rate unchanged at between 3.5 percent and 3.75 percent in June.
Ether leads altcoins
Ether outperformed bitcoin, jumping 4.45 percent to $1,879.68 and extending its seven-day gain to 8.00 percent. The cryptocurrency’s market capitalization stood at $226.49 billion, with $14.50 billion traded over 24 hours.
BNB advanced 1.43 percent to $578.00, giving it a market value of $77 billion.
XRP gained 3.51 percent to $1.1088 and was 2.31 percent higher over the week. Its market capitalization reached $69.17 billion.
Solana rose 2.59 percent to $77.405, although its weekly performance remained almost unchanged with an advance of just 0.07 percent. Its market capitalization stood at $45.03 billion.
TRON added 0.97 percent to $0.328378, giving it a market value of $31.11 billion.
Hyperliquid was among the stronger large-cap performers, surging 6.42 percent to $68.1530. However, it remained 0.26 percent lower over seven days.
Dogecoin climbed 2.10 percent to $0.073592 and extended its weekly gain to 3.01 percent.
Broader market climbs
Zcash led the wider cryptocurrency table, advancing 12.03 percent to $570.08 and taking its seven-day gain to 22.00 percent.
Its market capitalization reached $9.54 billion, supported by $708.34 million in daily trading volume.
UNUS SED LEO increased 2.51 percent to $9.7969, while Stellar gained 2.65 percent to $0.18572.
Chainlink jumped 4.77 percent to $8.358, leaving it 9.63 percent higher over seven days.
Monero edged up 0.46 percent to $325.670. Cardano advanced 3.67 percent to $0.1645, although it remained 1.49 percent lower for the week.
Canton climbed 5.34 percent to $0.13747, extending its seven-day advance to 10.24 percent.
Bitcoin Cash was the only cryptocurrency among the top 20 to trade in negative territory over 24 hours. It fell 1.01 percent to $234.56 but retained a weekly gain of 0.68 percent.
Gram, previously known as Toncoin, increased 1.30 percent to $1.6042 and was 1.61 percent higher over seven days.
Stablecoins hold steady
Stablecoins remained close to their dollar pegs as trading activity increased across the broader market.
Tether USDT traded at $0.9995 after rising 0.05 percent. Its market capitalization stood at $184.23 billion, while its 24-hour trading volume reached $62.91 billion.
USDC changed hands at $1.0007, up 0.02 percent, with a market value of $72.99 billion.
Dai traded at $0.99920 following a 0.03 percent increase.
CoinGecko valued the combined stablecoin market at $305 billion, representing 13.26 percent of the total cryptocurrency market.
The substantial share held by stablecoins indicates that a large pool of capital remains within the digital asset ecosystem without being fully deployed into more volatile cryptocurrencies.
Movements from stablecoins into bitcoin, ether and other tokens could provide further momentum if investors become more confident that inflation is cooling and interest rates will remain unchanged.
ETF demand returns
Institutional investment flows offered additional support to Wednesday’s rally. U.S. spot bitcoin exchange-traded funds recorded net inflows of $181.1 million on July 14, reversing part of the $424.7 million withdrawn during the previous session.
The return of positive daily flows was encouraging, although the broader institutional picture remained fragile.
Bitcoin investment products had experienced approximately $8 billion in withdrawals over eight weeks, representing the longest outflow streak recorded by U.S. spot bitcoin ETFs.
The reversal therefore represents an early improvement rather than confirmation of a sustained change in institutional sentiment.
ETF flows have become an important indicator of demand because they show whether regulated investment products are attracting fresh capital or facing redemptions. Consistent inflows can support bitcoin by increasing the amount of cryptocurrency that fund issuers must acquire.
Fed risks remain
The softer inflation report gave digital assets room to recover, but uncertainty over U.S. monetary policy has not disappeared.
Federal Reserve Chair Kevin Warsh said during his semiannual congressional testimony that policymakers had “no tolerance” for persistently elevated inflation and remained committed to restoring price stability.
He did not provide a clear indication of the Fed’s next interest rate decision, emphasizing that officials remained committed to both price stability and maximum employment. Reuters
The June inflation report significantly reduced expectations for an immediate rate increase. Market pricing following the release indicated an approximately 83 percent probability that the Fed would leave rates unchanged in July. Business Insider
Treasury yields and the dollar declined after the report, improving conditions for cryptocurrencies and other risk-sensitive assets. The 10-year Treasury yield fell to 4.561 percent from 4.610 percent, while the two-year yield dropped to 4.193 percent from 4.261 percent.
Recovery faces tests
Wednesday’s rally follows a difficult first half of 2026 for the cryptocurrency market. Bitcoin dropped to its weakest level since September 2024 earlier in July after losing around half its value from its October 2025 record of $126,223.18.
Persistent ETF withdrawals, weaker investor demand and concerns about potential selling by digital asset treasury companies had weighed on sentiment.
Citigroup reduced its 12-month bitcoin forecast to $82,000 from $112,000 at the beginning of July and lowered its ether target to $2,240 from $3,175. The bank cited negative ETF flows, weaker investor appetite and limited progress on U.S. digital asset legislation. Reuters
Citi also reduced its assumption for net ETF inflows over the coming 12 months from $10 billion to zero. At the time of the revision, bitcoin ETF flows were approximately $3.3 billion lower since the beginning of the year.
Corporate demand has also become less predictable. Strategy, the world’s largest publicly traded corporate holder of bitcoin, made no purchases or sales during the week ending July 12. Instead, it raised $467 million by issuing common stock and increased its cash reserves to around $3 billion.
Key levels ahead
Bitcoin’s next test is whether it can establish a sustained position above $65,000. A decisive move beyond that level could strengthen market confidence and encourage further buying across ether and the wider altcoin market.
However, the inflation relief recorded in June may prove temporary. Renewed geopolitical tensions have pushed oil prices higher again, raising the possibility that energy costs could return as a source of inflationary pressure.
Investors will therefore monitor incoming U.S. economic data, oil prices, Treasury yields, the dollar and daily ETF flows for signs that Wednesday’s recovery has stronger foundations.
The relative strength of ether, Zcash, Chainlink and Hyperliquid suggests that traders are becoming more willing to move beyond bitcoin and take on additional risk.
