In the United States, the encryption market rose rapidly after inflation data were lower than expected in June. Bitcoin rose from around $62,000 to $6.49 million, to $1884 in the case of the Taifeng, with a significant initial recovery in a short period of time.

CPI rebounded below expectations

Data show that in the United States in June the CPI ring ratio fell by 0.4 per cent, the largest single-month decline since April 2020, with annual rates falling from 4.2 per cent in May to 3.5 per cent, below market expectations of 3.8 per cent. Core CPI has fallen to 2.6 per cent and the ring is even and below expectations.

Following the publication of inflation data, there has been a general increase in major encrypted assets. Bitcoin grew by about 3 per cent to $6.46 million, by about 5 per cent to $1880 over the inn, and SOL recorded about 3 per cent. Market data indicate that approximately $300 million of empty warehouse space has been liquidated.

The Fed didn't release the drop-off.

This CPI data is a major inflation reading prior to the Federal Reserve Conference of 28-29 July and is therefore seen by the market as an important reference for short-term policy expectations.

However, the report mentions that Federal Reserve Chairman Kevin Warsh did not accept the judgement that the “inflation task has been completed” when he testified in Congress. He stated that the Fed “does not tolerate” continued high inflation, and said that if the policy was right, the rise in inflation over the past five years would be the past.

In terms of interest rate expectations, Polymarket data show that the market's bet on the July interest rate drops fell sharply after CPI data and Warsh interventions, from 35 per cent to 6 per cent. However, the market's expectation of at least a further increase in interest during the year is still close to 80 per cent, only down from about 90 per cent before.

ETF continues to record net inflows

On the financial front, the real bitcoin ETF recorded a net inflow of $181 million on Tuesday and the ETF net inflow of the Taifeng cash in the amount of $58 million, indicating that institutional funds are still entering the relevant products.

In addition to the mainstream currency, part of the highly volatile currency has increased even more. According to the report, HYPE has increased by about 7 to 68 dollars, and PI, PUMP and ZEC by between 13 and 15 per cent.

At the same time, Pump.fun completed its first major unlocking period of one year, with about $86 million PUMP tokens entering the market. There was a wheeling of funds within the Robinhood Chain ecology, some of the meme coins fell, and new issuances and protocol-type tokens performed better.

Overall, inflation data short-lines boosted risk asset sentiment, but the Fed’s latest statement did not significantly shift towards easing, and the market will continue to follow the policy signals released at the July-end conference.