Bitcoin above $65,000 as inflation worries ease

Bitcoin had been trading in a range of $60,000 to $65,000 since the end of June

Bitcoin’s price rose above $65,000 as worries about inflation in the U.S. begin to ease.

Economic data that showed the closely watched U.S. Producer Price Index (PPI), an inflation gauge, dropped in June has softened expectations for interest rate hikes later this year.

The Producer Price Index, which measures wholesale costs in the country, declined 0.3% in June. Economists had expected the gauge to be unchanged during the month.

This was the second straight day of positive inflation reports in the U.S., with the Consumer Price Index (CPI) posting an unexpectedly sharp drop of 0.4% in June.

Inflation dropped in June alongside crude oil prices, which declined sharply as Iran and the U.S. reached a ceasefire in their war.

The softening inflation removes pressure from the U.S. central bank to raise interest rates in order to reign it in. That’s good news for risk assets such as cryptocurrencies.

Bitcoin had been trading in a range of $60,000 to $65,000 since the end of June. Analysts say it is key for the digital asset to break above resistance at $65,000.

The total crypto market rose more than 2% on July 15 to jump above $2.3 trillion as Bitcoin reclaimed the $65,000 level.

Ethereum is trading above $1,900 for the first time since early June. Other digital assets such as Solana and XRP are also up.

Despite weakening inflation, financial markets are still pricing in two 25-basis point interest rate hikes from the U.S. central bank this year, one in September and another in December.

BTC hit an all-time high of just over $126,000 last October.