Bitcoin moved back toward the $65,000 level on Thursday after softer U.S. inflation data eased concerns that the Federal Reserve could raise interest rates again. However, renewed tensions between the United States and Iran kept investors cautious and limited the strength of the recovery.
Bitcoin climbed around 1.2% over the past 24 hours, reaching an intraday high of approximately $65,040. The cryptocurrency had earlier fallen to $63,252 before recovering and trading near $64,804.
The broader crypto market also moved higher following the inflation report. Ethereum gained about 1.3% to trade near $1,928, while BNB rose 3.3% to approximately $587. Solana increased 1.6% to $74.64, and Hyperliquid added around 2.7%.
XRP and TRON posted smaller gains, while Dogecoin remained mostly unchanged. This suggested that traders were becoming more optimistic but were not yet moving aggressively into highly speculative cryptocurrencies.
The total cryptocurrency market capitalization increased by approximately 0.9% to $2.30 trillion. Bitcoin continued to dominate the market with a 56.6% share, while Ethereum accounted for around 10.1%.
Softer PCE Inflation Supports Bitcoin Price
Bitcoin’s rebound followed the release of the latest Personal Consumption Expenditures report from the U.S. Bureau of Economic Analysis.
Annual headline PCE inflation declined to 3.7% in June, down from 4.1% in May and in line with market expectations. On a monthly basis, headline inflation fell by 0.1%.
Core PCE inflation, which excludes food and energy prices, increased by only 0.1% during the month. This was lower than the expected 0.2% rise. The annual core inflation rate also eased from 3.4% to 3.3%.
The weaker figures reduced immediate pressure on the Federal Reserve to raise interest rates. Higher rates usually create difficult conditions for Bitcoin and other risk assets because they increase borrowing costs and make interest-paying investments more attractive.
However, inflation remains well above the Federal Reserve’s 2% target. Long-term borrowing costs also stayed elevated, with the 30-year U.S. Treasury yield rising above 5.2%, its highest level since 2007.
These concerns prevented Bitcoin from making a clear breakout above $65,000. Although the cryptocurrency briefly touched the level, buyers had not yet established enough momentum to keep the price above it.
Stocks and Bitcoin Miners Move Higher
U.S. stock markets also reacted positively to the inflation report. The S&P 500 gained around 0.9% in early trading, while the Nasdaq Composite rose approximately 1.6%. The Dow Jones Industrial Average added about 0.6%.
Technology stocks produced mixed results. Microsoft shares jumped around 9% after the company’s earnings and outlook eased concerns about artificial intelligence infrastructure spending. Meta shares, however, dropped more than 8% because of higher expenses.
Crypto-related stocks also delivered uneven results. Strategy gained approximately 2.9%, Coinbase remained close to unchanged, and Robinhood declined by around 2%.
Bitcoin mining companies recorded much stronger gains. MARA climbed nearly 16%, while Riot Platforms and CleanSpark increased by about 19% each. IREN surged almost 25%, although part of its rise may have been linked to its growing involvement in artificial intelligence infrastructure.
Mining stocks are generally more sensitive to Bitcoin price movements. This means they can outperform Bitcoin during a rally but may also experience sharper losses when the cryptocurrency declines.
U.S.–Iran Conflict Keeps Investors Cautious
Despite gains in stocks and cryptocurrencies, investors continued to move money into defensive assets because of renewed military tensions between the United States and Iran.
Spot gold rose approximately 0.3% to $4,076 per ounce, while silver gained around 0.6% to trade near $58. Gold futures advanced by about 1%, supported by a weaker U.S. dollar and concerns about further escalation in the Middle East.
The simultaneous rise in Bitcoin, stocks and precious metals showed that investors were not fully returning to riskier assets. Instead, many appeared to be maintaining protective positions while reacting positively to the softer inflation report.
The U.S. military reportedly carried out strikes against several Iranian Revolutionary Guard targets after Iran launched ballistic missiles toward American forces in the Middle East.
The conflict has raised concerns about global oil supplies and shipping through the Strait of Hormuz. Brent crude briefly climbed to $93.31 per barrel before falling below $90 as traders assessed discussions involving Oman and Iran. West Texas Intermediate crude also pulled back after approaching $86.
A further rise in oil prices could increase inflationary pressure, strengthen expectations of tighter Federal Reserve policy and reduce demand for Bitcoin and other risk assets.
Bitcoin Faces Resistance at $65,000
The $65,000 level remains Bitcoin’s most important short-term resistance area. A sustained move above this price could strengthen the recovery and attract additional buyers.
However, another rejection near $65,000 could push Bitcoin back toward its intraday low of approximately $63,250, which currently serves as an important support level.
The latest PCE report has provided some relief to the crypto market, but geopolitical tensions and elevated Treasury yields remain significant risks. Bitcoin’s next major move may depend on whether inflation continues to cool and whether the U.S.–Iran conflict escalates further.
