US inflation cooling, could this be the turning point for Bitcoin?

A surprising data point has emerged from the United States: inflation cooled much faster in June than most economists had anticipated. This immediately proved to be good news for stocks and cryptocurrencies, all of which saw a brief rally.

The drop in energy prices was the primary driver. The average price of gasoline for instance fell by 10 percent in June.

However, given that the conflict between Iran and the United States is flaring up again in July, this euphoria could be short-lived.

Crypto Winter

Earlier this year, Bitcoin attempted to break out of the so-called ‘crypto winter’ between April and May.

At that time, the value of the largest digital coin rose from around $60,000 to $80,000, but the price quickly fell back down following the sale of some Bitcoin holdings by Strategy.

Ever since the beginning of June, the price of Bitcoin has been trapped within a relatively wide trading range of $60,000 to $65,000.

Thanks to the lower inflation we are at least trying to break $65,000.

We must now await signals from Kevin Warsh, the new Federal Reserve Chair. If he hints that no further interest rate cuts are imminent in the coming months, due to cooling inflation, Bitcoin could well begin a new upward climb.