Market Update: Crypto Jumps on Softer CPI and Warsh Testimony
Fresh macroeconomic data and Federal Reserve commentary set the tone for a recovery across cryptocurrency markets on Tuesday.
Summary:
- U.S. inflation cooled sharply in June, reinforcing expectations that price pressures may be easing.
- Bitcoin climbed above $63,700 while Ethereum led the market with gains exceeding 5% after the CPI release.
- Fed Chair Kevin Warsh reaffirmed the Federal Reserve’s focus on its statutory mandate while outlining a leaner communication strategy.
- Technical indicators and derivatives positioning suggest traders are rebuilding bullish exposure after last week’s pullback.
Crypto Markets Advance After Softer CPI, Warsh Testimony
Cooling U.S. inflation and fresh remarks from Federal Reserve Chair Kevin Warsh boosted risk appetite on Tuesday, lifting cryptocurrencies as investors reassessed the outlook for interest rates.
The June Consumer Price Index (CPI) fell 0.4% month over month, the largest monthly decline since April 2020, according to the Bureau of Labor Statistics. Annual inflation slowed to 3.5% from 4.2% in May, while core CPI was unchanged on the month and eased to 2.6% year over year.
Lower energy prices accounted for most of the decline, offsetting continued increases in shelter and food costs. The report strengthened expectations that inflation may continue moderating, giving markets additional confidence that monetary policy could become less restrictive if the trend persists.
Ethereum Outperforms as Risk Appetite Returns
The softer inflation reading fueled a broad recovery across digital assets.
Ethereum led large-cap gains, rising more than 5% over the past 24 hours to trade above $1,860, while Bitcoin climbed roughly 2% to reclaim the $63,700 level.
The advance extended beyond the two largest cryptocurrencies. BNB gained about 2%, XRP rose more than 2%, Dogecoin added around 2%, and Zcash was among the strongest performers with gains exceeding 5%.
Overall crypto market capitalization increased to roughly $2.21 trillion, according to CoinMarketCap.
Despite improving prices, the Crypto Fear & Greed Index remained in Fear territory at 32, indicating investor sentiment has yet to fully recover from recent volatility.
Warsh Signals Data-Driven Policy
The inflation report coincided with Federal Reserve Chair Kevin Warsh‘s appearance before the Senate Banking Committee.
Since assuming office, Warsh has introduced several changes to the Federal Reserve’s communication framework, including creating dedicated task forces reviewing monetary policy, inflation, productivity and the balance sheet. He has also shortened FOMC statements, reduced the length of post-meeting press conferences and indicated the central bank will rely less on forward guidance.
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When questioned about President Donald Trump’s cryptocurrency investments and recent financial disclosures, Warsh declined to comment directly, saying the Federal Reserve remains focused on fulfilling its statutory mandate rather than political matters.
His remarks reinforced the view that incoming economic data – not political developments – will continue to drive monetary policy decisions.
Technical Picture Improves Across Major Cryptocurrencies
The macro-driven rally was reinforced by improving technical signals across both Bitcoin and Ethereum, with each reclaiming key support levels after last week’s pullback.
Bitcoin
Bitcoin traded around $63,790 after rebounding from an intraday low near $62,710 and briefly touching $64,110.
Key technical levels:
- 20-period SMA: $63,371
- 50-period SMA: $63,292
- 100-period SMA: $62,121
- 200-period SMA: $62,703
The move pushed Bitcoin back above its major moving averages, indicating buyers have regained short-term momentum.
The RSI remains below overbought territory, suggesting there is still room for further upside if macro conditions remain supportive. Immediate resistance is seen around $64,000-$64,500.
Ethereum
Ethereum outperformed the broader market, climbing above $1,860 after reaching an intraday high near $1,881.
Key technical levels:
- 20-period SMA: $1,798
- 50-period SMA: $1,780
- 100-period SMA: $1,722
- 200-period SMA: $1,705
Ethereum now trades comfortably above all major moving averages, reinforcing its stronger technical structure relative to Bitcoin.
The RSI is approaching the 70 overbought threshold, indicating bullish momentum remains strong but that the market may be vulnerable to short-term profit-taking. The next area traders are watching is $1,880-$1,900, while $1,780-$1,800 has become the first important support zone.
Derivatives Reflect the Shift in Positioning
The move higher also triggered significant repositioning in derivatives markets.
According to CoinGlass, approximately $384 million in leveraged positions were liquidated over the past 24 hours. Short liquidations totaled roughly $221 million, exceeding about $163 million in long liquidations, indicating that bearish traders absorbed most of the losses during the rally.
Ethereum accounted for the largest share of liquidations, followed by Bitcoin, reflecting the strength of the rebound across major cryptocurrencies.
Taken together, the latest CPI report, Warsh’s commitment to a data-driven Federal Reserve and improving technical structures helped shift market sentiment. While macroeconomic developments provided the initial catalyst, the recovery above key technical levels and heavy short liquidations suggest traders have become increasingly willing to add risk as expectations for a less restrictive policy outlook improve.
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.
