Bitcoin hits $65.5K as US PPI inflation data sparks rally
Bitcoin hits $65.5K once more on Wednesday as surprise US Producer Price Index data delivered the week's second cooler inflation read, pushing BTC to its highest level since June 22 and marking a three-week peak after Tuesday's downside CPI surprise also beat expectations. The PPI-driven rally eased Fed rate-hike fears, giving risk assets a brighter macro backdrop even as traders stay cautious about holding the move.
Key Takeaways
- BTC/USD reached $65,500 for the first time since June 22, per TradingView data cited by Cointelegraph.
- June PPI rose 5.5% year-on-year after a 0.3% monthly drop, with final demand goods falling 1.4%.
- Back-to-back soft CPI and PPI readings are tempering market expectations for near-term Fed rate hikes.
- Traders flagged liquidity near $65.6K and $67.2K, with a break above the latter eyed as a path toward $70K.
- Some analysts warn Bitcoin could still derisk if bear-market patterns from the past year repeat.
Why did Bitcoin hit $65.5K today?
Bitcoin climbed after US inflation data cooled for a second consecutive day, extending the relief rally that began when Tuesday's Consumer Price Index surprised to the downside. TradingView data showed BTC/USD touching $65,500, marking a three-week high for the largest cryptocurrency.
The move came despite macro pressure from the US-Iran conflict and its impact on oil prices, suggesting traders were prioritizing domestic inflation signals over geopolitical risk. For more daily moves like this, follow our Fintech & Crypto Alerts coverage.
What did the June PPI report show?
The Bureau of Labor Statistics reported that the June Producer Price Index rose 5.5% year-on-year following a 0.3% monthly decrease. Prices for final demand goods fell 1.4%, while the index for final demand services moved up 0.2%, according to the BLS official release.
Economist Mohamed El-Erian called the figures "much better-than-expected" and said they should boost equities while further tempering market expectations for upcoming interest rate hikes. The Kobeissi Letter added that inflation expectations continue to decline, referencing Polymarket bets on a Fed rate hike.
How is the Fed outlook shifting?
CME Group's FedWatch Tool showed changing expectations for the Federal Reserve's September decision, with a 0.25% rate hike no longer the most likely outcome. Softer PPI joined Tuesday's CPI surprise in lowering the odds of a near-term Fed tightening move.
That shift matters for Bitcoin because risk assets have traded sensitively to inflation prints and rate expectations throughout 2026. When hike odds fade, liquidity tends to favor speculative assets, including crypto.
Can Bitcoin hold above $65,500?
Market participants are not rushing into overly bullish calls. Trader Daan Crypto Trades noted liquidity sitting above at the $65.6K mark and, more importantly, at $67.2K. Breaking above the latter, he wrote, could turn the move into something larger and reopen a path toward the $70K region.
Trader and analyst Rekt Capital flagged Bitcoin's approach to its 50-month exponential moving average, a level that has rejected price in prior bear-market cycles. Trader Killa added that if Bitcoin follows the same statistical pattern seen over the past 12 months, it could derisk for the remainder of the month and push back down.
The $65,500 reclaim is therefore a test, not a confirmation. Bulls need follow-through above $67.2K, while bears watch for rejection at long-term resistance. Until one side wins, Bitcoin remains positioned in the middle of its broader $60K-$80K range.