Community Trust ScoreVerified
Bitcoin continues to trade around $118,000 after the latest U.S. inflation data boosted optimism about a possible Federal Reserve rate cut. The June Consumer Price Index (CPI) showed slowing inflation, encouraging crypto investors and strengthening Bitcoin’s recent gains.
Core CPI increased just 0.1% in June—the fifth straight month of low inflation growth. This has increased expectations that the Fed may lower interest rates in September, which could lead to more capital flowing into the crypto market.
Eugene Cheung, Chief Commercial Officer at OSL, said the latest CPI data was “bullish for crypto” and added that it improves the chances of a near-term rate cut. Rate cuts typically make risk assets like Bitcoin more attractive to investors.
Bitcoin Stays Resilient Despite Crypto Regulation Delays
Bitcoin has shown strength even after the U.S. House failed to pass the GENIUS Act, a bill designed to provide clear crypto regulations. Although the vote was delayed, lawmakers are expected to revisit the bill soon.
Despite this hurdle, Bitcoin remained firm above $118,000. According to Nick Ruck, Director at LVRG Research, there’s still strong momentum in the current crypto bull run, and more gains could follow in the second half of the year.
Ethereum Rises as Stablecoin Bill and ETF Inflows Boost Demand
Ethereum (ETH) climbed above $3,100, showing renewed strength driven by two key developments—fresh inflows into spot ETH ETFs and the recent passing of a U.S. stablecoin regulation bill.
This new legislation provides a clear framework for stablecoins and supports Ethereum’s role as a foundation for tokenized dollars and decentralized finance (DeFi). ETH-based ETFs posted their eighth straight day of inflows, totaling $192 million.
Meanwhile, Ethereum has also been gaining attention from institutions. Publicly listed firms, like SharpLink and BitMine, have added ETH to their balance sheets, further supporting its recent rally.
Bitcoin and Ethereum ETFs Attract Institutional Money
U.S. spot Bitcoin ETFs saw their ninth straight day of net inflows, with a total of $403 million added on Tuesday alone. BlackRock’s IBIT led the way, with $416 million in new capital.
This strong interest from institutions is boosting confidence across the market. Ethereum ETFs also continue to attract new investments, showing that institutional players are looking beyond just Bitcoin.
Both Bitcoin and Ethereum now appear to be gaining recognition not only as speculative assets, but as long-term holdings for professional investors.
Altcoins Show Mixed Movement as Market Awaits More Signals
While Bitcoin and Ethereum grabbed the spotlight, other major altcoins showed smaller moves. Dogecoin (DOGE) rose to 19 cents, gaining 2.7% in 24 hours and 15% for the week. Solana (SOL) traded flat at $163, while XRP slipped slightly to $2.92.
BNB remained near $688, holding recent gains, and TRON’s TRX stayed around 3 cents. The lack of major moves in these coins suggests that traders are still watching Bitcoin’s next move before adjusting their portfolios.
Fed Rate Cut Could Drive Next Leg of Crypto Bull Run
The CPI data has raised hopes that the Fed may cut interest rates in September, which could bring more attention to crypto. If that happens, Bitcoin could continue to climb from its current level, and altcoins may follow.
Although the GENIUS Act delay was a setback for crypto regulation, it didn’t shake market sentiment much. Investors seem more focused on inflation, ETF inflows, and Ethereum’s growing use cases.
With institutional interest rising, crypto adoption expanding, and inflation cooling, many traders believe that Bitcoin’s rally still has room to grow.
Outlook: Bitcoin Holds Strong as Key Factors Align
Despite mixed news from the U.S. Congress, Bitcoin’s ability to hold above $118,000 shows strong market confidence. Ethereum is gaining ground thanks to new legislation and corporate demand.
If the Federal Reserve signals a rate cut in the coming weeks, it could be the next major catalyst for crypto markets. In the meantime, ETF inflows and regulatory progress will continue to shape investor behavior.
Crypto bulls now look toward Q3 2025 with optimism, expecting more growth, more adoption, and potentially new all-time highs in the coming months.
