July CPI data showed inflation trends cooling, with PCE rising more slowly than expected. This removes some near-term pressure on the Fed to maintain aggressive rate hikes, typically bullish for risk assets including crypto.
Renewed enthusiasm around artificial intelligence stocks has fueled market rallies. Tech-heavy rallies tend to benefit risk-on assets, including crypto, which benefits when capital rotates from safe assets into higher-upside bets.
While stocks hit records, Bitcoin traded near $63,500 (down 2% weekly) and Ethereum ranged $1,878–$1,983. Crypto is waiting for clarity on macro direction rather than following stock enthusiasm directly.
Crypto traders are monitoring Middle East geopolitical tensions, particularly Hormuz Strait negotiations. Persistent uncertainty keeps investors cautious about adding risk exposure, even with stock market strength.
If stock strength holds and Fed confidence in rate stability grows, crypto could break above recent resistance. But macro surprises—from geopolitics to employment data—could derail the rally. Consolidation likely until clarity emerges.
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