# Bitcoin surges on inflation data surprise US inflation downturn fuels crypto market rally - **Source:** [Cointelegraph.com News](https://brifing.si/source/2e81e982-0137-4db0-8ac2-351f37085775) - **Published:** 2026-07-14 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/8cf2bb67-a816-4c0f-ae7b-b27c8b6ec465 ## Bitcoin's sudden spike Bitcoin price surpassed $64,000 as June's US inflation data came in below expectations. The Consumer Price Index (CPI) showed its largest monthly decline since April 2020. Energy prices led this downward trend, marking a sharp reversal from March's 10.9% increase and becoming the primary driver behind the inflation cooldown. ## Positive ripple effect The favorable inflation reading boosted not just cryptocurrencies but also US equities. Market expectations for Federal Reserve policy turned more dovish, with reduced odds of rate hikes. However, consensus still points to a 0.25% increase at September's Fed meeting, maintaining some caution in financial markets despite the positive momentum. ## Energy sector's dramatic slide Despite US-Iran tensions and disruptions at the Strait of Hormuz, the energy price index fell 5.7% in June. This contrasted sharply with March's 10.9% surge. The energy sector's decline offset increases in shelter and food costs, playing a pivotal role in pulling down overall inflation figures. ## Market commentators remain cautious Economist Mohamed El-Erian noted the inflation print would temper overly hawkish policy expectations. However, crypto traders remain wary about whether Bitcoin can break through the $64,000 resistance level. Questions linger about sustainability of the upward movement driven by short position liquidations. ## Liquidity pools and key levels Analysts highlight a liquidity pool above $64,800 but warn that failure to maintain the weekly open price could lead to a test of $60,000 support. Over $220 million in crypto short positions were liquidated within 24 hours, underscoring market volatility despite the inflation-driven rally. ## Investor takeaways While the inflation data boosted risk appetite, Bitcoin's technical indicators present mixed signals. Analysts emphasize the market remains range-bound and advise caution. The correlation between cryptocurrencies and traditional markets reaffirms the significance of macroeconomic data for digital asset investors. ## Sources covering this story - https://cointelegraph.com/markets/bitcoin-jumps-on-lowest-us-cpi-since-2020-as-traders-stay-wary-of-64k-failure?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._