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The tape got a little friendlier
Crypto woke up on Tuesday and decided to stop sulking. A cooler-than-expected June CPI reading helped dial back the odds of a near-term Fed rate hike, and traders immediately did what traders do: they reached for risk.
Bitcoin climbed to the $65,000 neighborhood for the first time in more than three weeks, while Ethereum flirted with $1,900. XRP, Solana, and Dogecoin all joined the party, because nothing says “macro trade” like a bunch of digital tokens all moving in the same direction at once.
Why you should care
This isn’t just a cute one-day bounce. Crypto tends to love two things: easier financial conditions and a crowd that’s willing to gamble on momentum. Cooler inflation checks both boxes. When rate-hike odds fade, the discount-rate math gets less hostile, and speculative assets usually catch a bid.
A few things stood out:
- More than $350 million in crypto positions got liquidated in 24 hours, which means the move squeezed some bearish traders into the emotional equivalent of stepping on a rake.
- Bitcoin open interest ticked up, but Binance traders reportedly trimmed long exposure, so the crowd still isn’t fully all-in.
- Strategy and Bitmine Immersion Technologies moved with the sector, which is a reminder that crypto stocks can behave like turbo-charged proxies when sentiment shifts.
The weirdly bullish part
Analyst Michaël van de Poppe pointed to a bullish divergence on Bitcoin’s daily chart and said a clean break above $65,000 could open a path toward the $88,000 to $92,000 range. Meanwhile, Santiment says crypto chatter on social media is near its lowest level since summer 2024 — which, in crypto-land, is basically the “everyone hates it right before it rips” setup.
Big picture: if inflation keeps cooling and the Fed stays less hawkish, crypto doesn’t need a perfect narrative to rally. It just needs a little less bad news — and this week, that was enough.