Daily Market Update: Bitcoin Nears $65K and S&P 500 Rises as U.S. Inflation Data Reduces Rate Hike Fears

TLDR

Bitcoin jumped 3.6% to near $64,800 after June CPI came in lower than expected at 3.5% Fed rate hike odds dropped sharply from 43% to 13% following the inflation data Ether led crypto gains, rising 5.3% on the day to near $1,880 Major bank stocks rallied after JPMorgan posted record quarterly profit and rivals beat estimates Oil prices climbed again on U.S.-Iran military tensions and a battle for control of the Strait of Hormuz

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U.S. inflation cooled more than expected in June, and markets reacted fast. Bitcoin surged, stocks climbed, and bets on a Federal Reserve rate hike nearly vanished overnight.

The Consumer Price Index rose 3.5% in the 12 months through June, down from 4.2% in May. Core inflation, which strips out food and energy, fell to 2.6% from 2.9%. That easing in core prices removed the strongest case for another rate hike.

BREAKING: June CPI inflation falls to 3.5%, below expectations of 3.8%

Core CPI inflation falls to 2.6%, below expectations of 2.8%.

Month-over-month CPI inflation fell -0.4%, the biggest monthly drop since May 2020.

US stock market futures are surging on the news.

— The Kobeissi Letter (@KobeissiLetter) July 14, 2026

Market odds of a July rate increase dropped from 43% to 13% after the data landed. The two-year Treasury yield fell six basis points.

Bitcoin climbed 3.6% over 24 hours to near $64,800, its best session in weeks. Around $31 billion changed hands during the move.

Bitcoin (BTC) Price

Ether was the standout performer in crypto, rising 5.3% on the day to near $1,880 and gaining 7.1% over the past week. Other tokens also moved higher. Hyperliquid’s HYPE gained 6.4% to $67, XRP added 3.7% to $1.10, Solana rose 3.6% to $78, dogecoin climbed 2.9%, and BNB added 1.9% to $579.

Why Inflation Data Moves Bitcoin

When the Fed raises rates, bonds and cash accounts pay more. That pulls money away from assets like Bitcoin that offer no yield. When rate hike odds fall, that pressure eases and money tends to flow back into riskier assets.

Jeff Ko, chief analyst at CoinEx, said the CPI print reduced “immediate downside pressure without building a durable breakout.” He noted that core inflation at 2.6% is still above the Fed’s 2% target, meaning the central bank has room to hold rates steady but not yet a reason to cut.

Ko pointed to the September FOMC meeting as the next key test for crypto markets, alongside ETF flows and the direction of the dollar.

Bank Earnings and Stock Market Moves

Equities also climbed on the inflation data. The S&P 500 rose 0.38% to 7,543.59, the Nasdaq gained 0.90% to 26,107.01, and the Dow edged up 0.02% to 52,508.27.

E-Mini S&P 500 Sep 26 (ES=F)

Big bank results added to the positive tone. JPMorgan Chase reported a record quarterly profit, pushing its shares to an all-time high. Goldman Sachs, Bank of America, and Citigroup all beat Wall Street estimates. Strong trading revenue and corporate deal activity drove the results.

Not every stock gained. IBM fell 25% after warning of a big earnings hit, saying it had not kept pace with a shift in corporate spending from software to data-center infrastructure.

Asia-Pacific markets also responded positively. South Korea’s Kospi jumped 8.2%, and SK Hynix rose 13% in Seoul after its U.S. depositary receipts surged 27%.

Oil prices continued to rise. Brent crude settled at $84.73 a barrel, up 1.7%, as U.S.-Iran military exchanges and the standoff over the Strait of Hormuz kept supply concerns elevated. Crude has gained around 11% over two sessions.

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