Bitcoin Maintains $118K Level as Ether, Dogecoin Tick Up Following CPI-Fueled Rate Cut Optimism

Crypto Markets Climb as CPI Cools: Bitcoin Holds $118K, Ethereum and Dogecoin Lead Altcoin Advance

Bitcoin remained steady above $118,000 in Wednesday’s Asia trading hours, buoyed by softer U.S. inflation data that boosted expectations of a Federal Reserve rate cut in September. Altcoins, including Ethereum and Dogecoin, posted modest gains as investor sentiment turned more bullish.

June’s Consumer Price Index (CPI) showed core inflation rising just 0.1% for the fifth consecutive month, reinforcing the narrative of sustained disinflation. The data prompted markets to price in a higher likelihood of monetary easing by the Fed in the coming months.

“This is an ideal CPI print for digital assets,” said Eugene Cheung, Chief Commercial Officer at OSL. “If the Fed pivots in September, that could trigger a wave of institutional capital flowing into crypto.”

Cheung noted Bitcoin’s ability to hold its ground despite legislative delays — including a procedural hiccup for the GENIUS Act — as a signal of deepening confidence in crypto’s macro outlook. The bill, which proposes clear rules for stablecoin issuers, could see renewed momentum in Congress in the coming weeks.

Ethereum, Dogecoin Outperform

Ethereum (ETH) traded above $3,100, buoyed by continued inflows into spot ETH ETFs and optimism around regulatory clarity. Analysts expect Ethereum to play a key role in the tokenization of real-world assets, particularly U.S. dollar-backed instruments.

Dogecoin (DOGE) rose 2.7% to $0.2133, extending its seven-day gain to nearly 15%. Solana (SOL) held steady at $163, while XRP hovered just under $2.92. Binance Coin (BNB) traded around $688, and TRON (TRX) was little changed at $0.03.

Spot ETFs Extend Inflow Streak

U.S.-listed spot Bitcoin ETFs attracted $403 million in net inflows on Tuesday, marking their ninth straight day of gains. BlackRock’s IBIT led the pack with $416 million in new capital, outpacing combined outflows of $70 million from GBTC, FBTC, and ARKB, according to SoSoValue data.

Ethereum ETFs also saw strength, with $192 million in net inflows — their eighth consecutive day in the green.

Macro Uncertainty Pressures Stocks but Not Crypto

While Asian equities and U.S. stock futures traded lower amid lingering inflation concerns and trade-related uncertainty, crypto markets remained resilient. The divergence highlights growing demand for digital assets in an environment where investors are increasingly positioning for rate cuts.

Dallas Fed President Lorie Logan offered a cautious tone, saying more evidence of slowing inflation and a weaker labor market would be needed before any policy shift.

Still, crypto analysts are optimistic.

“The fact that Bitcoin is holding above $118,000 despite political delays and macro headwinds shows the strength of this cycle,” said Nick Ruck, Director at LVRG Research. “We expect continued upside for crypto through the second half of the year.”