Bitcoin Back Above $65,000 as Ethereum Reclaims $1,900
Cooling U.S. inflation and stronger institutional support helped Bitcoin and the broader crypto market recover, with Ethereum and several major altcoins leading the rebound.
Summary
- Cooling U.S. inflation data strengthened expectations for a less restrictive Federal Reserve, supporting demand for risk assets.
- Bitcoin reclaimed $65,000 while Ethereum outperformed as institutional developments and on-chain accumulation reinforced bullish sentiment.
- Capital inflows continue favoring large-cap crypto, with Bitcoin dominance remaining elevated despite gains across altcoins.
- Long-term holder activity suggests the current advance is being driven by accumulation rather than speculative excess.
A combination of softer U.S. inflation, improving institutional adoption and tightening on-chain supply has strengthened the case for digital assets, allowing Bitcoin and Ethereum to extend their July advance while broadening participation across the crypto market.
Softer Inflation Changes the Macro Narrative
The latest U.S. inflation reports provided investors with the clearest evidence in months that price pressures continue to ease.
June’s Consumer Price Index fell 0.4% month over month, the largest monthly decline since April 2020, driven primarily by lower energy prices. Producer Price Index data released today also pointed to moderating producer inflation.
Together, the reports reduced expectations that the Federal Reserve will need to maintain restrictive monetary policy for longer.
Treasury yields eased, equity futures advanced and investors rotated back into higher-risk assets, including cryptocurrencies.
During congressional testimony, Federal Reserve Chair Kevin Warsh avoided commenting on questions surrounding President Donald Trump’s crypto-related financial disclosures, reiterating that the central bank remains focused on its statutory responsibilities rather than individual market participants.
Bitcoin Reclaims $65,000
Bitcoin climbed back above $65,000, extending its recovery after softer U.S. inflation data reduced expectations of further Federal Reserve tightening and improved sentiment across risk assets.
Technical Snapshot
- Price: ~$65,250
- 24-hour change: +2.4%
- Weekly gain: +5.4%
- Reclaimed the $65,000 resistance level.
- RSI-MACD indicator crossed into bullish territory with rising momentum.
Ethereum Outperforms as Altcoins Gain Momentum
Ethereum outperformed Bitcoin once again, climbing above $1,930 as capital continued flowing into large-cap altcoins following the broader market recovery.
Technical Snapshot
- Price: ~$1,935
- 24-hour change: +4.2%
- Weekly gain: +11.1%
- Broke decisively above $1,900.
- RSI-MACD accelerated sharply higher, confirming strengthening momentum.
The rally was reflected across the market, with Ethereum gaining more than 11% over the past week, while Zcash posted one of the strongest weekly performances with 25% weekly surge. Among other major cryptocurrencies, XRP rose around 3.3%, Hyperliquid gained nearly 6%, while Solana, Dogecoin and BNB also traded higher.
Market Structure Suggests Fresh Capital Is Entering
Price action also points to improving market quality rather than speculative rotation.
Bitcoin dominance remained close to 59% even as Ethereum and several altcoins outperformed during the session. Normally, sharp altcoin rallies coincide with falling Bitcoin dominance as capital rotates out of BTC. This time, both have advanced together.
That combination suggests fresh capital is entering the digital asset market instead of simply moving between existing crypto positions.
The liquidation data supports that interpretation. According to data from Coinglass, more than $360 million in leveraged positions were liquidated over the past 24 hours, with short sellers accounting for the overwhelming majority of losses. Interestingly, more than $127 million in short positions were liquidated in the past hour alone, highlighting how quickly bearish bets unraveled as prices recovered. The largest single liquidation occurred on Binance’s ETHUSDT pair, highlighting the aggressive repricing that followed the inflation data.
Institutional Momentum Continues to Build
The macro backdrop has coincided with a series of regulatory and institutional milestones that continue to reshape investor perception of digital assets.
Recent weeks have brought Circle’s U.S. national trust approval, Ripple’s MiCA authorization in Europe, Japan’s decision to regulate cryptocurrencies under its Financial Instruments and Exchange Act, and continued progress in tokenized settlement infrastructure through SWIFT and multiple central bank initiatives.
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Individually, these developments affect different segments of the market. Collectively, they point toward a broader transition in which crypto infrastructure is increasingly being integrated into regulated financial systems rather than operating alongside them.
For institutional investors, that reduces operational uncertainty while expanding the number of compliant channels available for capital allocation.
On-Chain Data Reinforces the Bullish Case
Blockchain data continues to complement the improving macro picture.
CryptoQuant’s Long-Term Holder versus Short-Term Holder Dominance Ratio has climbed to its highest level in roughly 30 months, indicating that experienced investors continue absorbing available Bitcoin supply despite higher prices.
Historically, the indicator has tended to peak during accumulation phases rather than market tops. Previous cycle highs developed only after long-term holder dominance began to decline as coins moved back into short-term hands.
That pattern has yet to emerge.
With long-term investors continuing to accumulate, Bitcoin trading roughly 50% below its previous all-time high, and macro conditions becoming more supportive, the current rally appears to be supported by structural demand rather than the speculative positioning that has characterized many previous short-term rebounds.
The information presented in this article is intended for informational purposes only and should not be interpreted as financial, investment, or trading advice. Coinspress.com does not promote or advocate for any particular investment strategy, asset, or cryptocurrency project. Cryptocurrency markets are highly volatile and unpredictable – always perform your own research and seek guidance from a qualified financial professional before making any investment decisions.
Alexander Zdravkov
Reporter at CoinsPress
Alexander Zdravkov is a market analyst and crypto journalist with interests in economics, broader financial markets and digital assets. His journey into crypto began more than four years ago, driven by a fascination with the rapid evolution of blockchain technology and the transformative potential of decentralized finance. He began analyzing market cycles and identifying emerging trends before they reach the mainstream. He holds a degree in International Relations - a background that helped shape his broader perspective on global economics, geopolitics, and the interconnected nature of modern financial markets. Whether covering the latest developments in the crypto sector or exploring broader macroeconomic themes, Alexander focuses on giving readers context rather than simply repeating headlines. During his career, he has authored more than 10,000 articles covering cryptocurrencies, traditional finance, and global market developments. His work spans everything from Bitcoin and altcoins to macroeconomic trends influencing risk assets worldwide.
