Bitcoin Nears $65K as Inflation Data Eases Fed Rate Hike Fears

The cryptocurrency market responded positively to the Bureau of Economic Analysis report, which placed annual headline PCE inflation at 3.7%. Core inflation similarly softened to 3.3%, signaling a potential reprieve from aggressive monetary tightening. Bitcoin touched an intraday high of $65,040, recovering from an earlier dip to $63,252, though it struggled to hold above the psychological $65,000 barrier. Major altcoins mirrored the trend, with BNB leading the charge among large caps with a 3.3% gain, while Solana and Ethereum posted modest increases.

Despite the cooling inflation figures, investors remain cautious. The concurrent rise of gold and silver underscores a persistent demand for safe-haven assets amidst the deepening U.S.–Iran conflict. Strikes by the U.S. military against Iranian Revolutionary Guard targets have introduced significant volatility into energy markets, with oil prices oscillating as fears mount over potential disruptions in the Strait of Hormuz.

Equity markets also reacted to the dual influence of the PCE data and mixed corporate earnings. While the S&P 500 and Nasdaq climbed, the tech sector showed divergence as Microsoft surged on AI infrastructure optimism, contrasting with Meta’s decline. Crypto-linked stocks saw a varied performance, yet Bitcoin miners experienced outsized gains—MARA, Riot Platforms, and CleanSpark all posted double-digit increases. These moves highlight a heightened sensitivity to Bitcoin’s price, though analysts warn that such volatility leaves these stocks vulnerable to any sudden reversal in the primary cryptocurrency’s support levels.