Bitcoin Holds Above $118K as CPI Data Fuels Fed Rate Cut Hopes; Ether and Dogecoin Outperform
Bitcoin stayed firm above the $118,000 level during Wednesday’s Asia session, as softer U.S. inflation data bolstered expectations of a potential Federal Reserve rate cut in September. The crypto market saw modest gains, with Ethereum and Dogecoin leading altcoin advances.
June’s Consumer Price Index (CPI) data came in cooler than expected, showing a 0.1% monthly increase in core inflation for the fifth consecutive month — reinforcing a disinflationary trend. This macro development strengthened the case for monetary easing and sparked renewed risk-on sentiment in crypto markets.
“This inflation print is highly supportive of crypto,” said Eugene Cheung, Chief Commercial Officer at OSL. “It puts a September rate cut firmly on the table and could unlock major institutional flows into digital assets.”
Cheung also emphasized that Bitcoin’s resilience — despite the delay in passing the GENIUS Act — reflects growing investor confidence. The bipartisan stablecoin legislation is expected to return for a vote in the coming weeks.
Ethereum, Dogecoin Lead Altcoin Gains
Ethereum (ETH) rose above $3,100, supported by continued capital inflows into spot ETFs and optimism over regulatory clarity following the stablecoin bill’s progress. Analysts believe Ethereum’s role as a base layer for tokenized dollar instruments positions it well in this new cycle.
Dogecoin (DOGE) jumped 2.7% to $0.2133, extending a seven-day rally to nearly 15%. Solana (SOL) remained steady around $163, XRP hovered below $2.92, and BNB consolidated near $688. TRON (TRX) traded flat at $0.03.
ETF Inflows Highlight Growing Institutional Appetite
Spot Bitcoin ETFs recorded their ninth straight day of net inflows, drawing $403 million on Tuesday. BlackRock’s IBIT led the way with $416 million in new investments, which more than offset combined outflows of $70 million from GBTC, FBTC, and ARKB, per data from SoSoValue.
Ether ETFs also saw strength, pulling in $192 million in net inflows for the eighth consecutive session.
Traditional Markets Struggle as Crypto Shines
While equities in Asia declined and U.S. futures dipped due to lingering inflation concerns and potential tariff pressures, the crypto market held up well. The divergence signals a growing appetite for digital assets amid macroeconomic uncertainty.
Dallas Fed President Lorie Logan cautioned that while the CPI data is encouraging, the central bank still needs more evidence of sustained inflation progress and a cooler labor market before cutting rates.
Still, analysts remain optimistic.
“Bitcoin holding above $118K, even with delays to the GENIUS Act, signals strong cyclical momentum,” said Nick Ruck, Director at LVRG Research. “We expect continued upside for crypto through the remainder of 2025.”
