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Bitcoin hits new high on inflation data
Bitcoin climbs to a record as US CPI cools and rate cut bets rise, with ETF flows supporting the move.
Bitcoin climbs to a record after US CPI data shows inflation at 2.7 percent, fueling bets on rate cuts and ETF inflows.
Bitcoin Hits New High After Inflation Data
Bitcoin rose to around 123,000 on Coinbase after the July CPI showed inflation at 2.7 percent year over year, a touch below the 2.8 percent forecast. The move followed the rally in the S&P 500 as investors priced in an easier policy path ahead.
ETF inflows were a clear support, with demand for Bitcoin and Ether products helping lift prices. The CME FedWatch tool pointed to higher odds of a rate cut in September, reinforcing a risk appetite across markets.
Key Takeaways
"Bitcoin bucks the doubt and hits a fresh high on lighter inflation"
A bold move tied to macro data
"Policy bets are driving this move more than fundamentals"
Analyst view on drivers
"ETF inflows fuel liquidity and push prices higher"
Market liquidity factor
"Momentum can fade fast when data and policy diverge"
Outlook caution
The rally shows how inflation data can shift market mood and push risk assets higher. Liquidity from ETFs adds a new channel that can lift prices beyond traditional cash trading, though that liquidity can also reverse quickly.
There is a political edge to the story. The article links the rally to policy shifts and spending plans, which can change inflation expectations and risk appetite. If policy stays accommodative, Bitcoin may stay resilient; if not, the gains could fade as traders reassess risk.
Highlights
- Macro winds lift risk assets and bitcoin follows
- ETFs keep liquidity flowing and prices rising
- Policy bets matter more than tech stories
- Momentum can turn on a dime in this market
Political and market risk
The article ties the rally to inflation data and political spending proposals, which could provoke backlash or volatility if policy signals diverge from market expectations.
Market momentum will hinge on upcoming data and policy signals rather than a single inflation print.
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