BTC Hits $65,000 Milestone as Favorable Inflation Trends Boost Sentiment

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U.S. spot Bitcoin ETFs saw about $181 million in inflows on Tuesday, rebounding from roughly $425 million in outflows the day before, according to SoSoValue. Ether ETFs also attracted fresh capital, adding around $58 million.

DTCC moves ahead with tokenization trial
The Depository Trust & Clearing Corporation is launching a pilot program to convert selected equities and U.S. Treasurys into digital tokens, the Wall Street Journal reported.

Nearly 40 major financial institutions—including Goldman Sachs, BlackRock, JPMorgan, and Vanguard—are taking part in the initiative.

Assets in the trial include shares of Microsoft and Circle, along with ETFs such as Invesco’s QQQ, State Street’s SPDR S&P 500 ETF (SPY), and iShares’ short-term Treasury bond ETF.

Williams: Inflation likely past its peak
New York Fed President John Williams said there are encouraging signs that inflation has peaked and should gradually decline.

He expects inflation to ease to around 3.25% by year-end and continue trending toward the Fed’s 2% target by 2027, reaching it in 2028.

His comments, along with softer producer price data, helped push Bitcoin above $65,000 for the first time in weeks.

PPI data comes in softer than expected
U.S. producer prices fell 0.3% in June, below expectations for a flat reading and reversing May’s 0.6% gain. On a yearly basis, PPI rose 5.5%, missing forecasts of 6.2%.

Core PPI increased 0.2% month-over-month versus expectations of 0.4%, while the annual rate came in at 4.7%, also below projections.

Bitcoin extended gains to around $64,800, up 2.1% over the past 24 hours. Nasdaq 100 futures rose 0.5%, while Treasury yields edged lower.

Crypto sees return of speculative capital
By mid-July, the Dow Jones U.S. Thematic Market Neutral Momentum Index—often tied to AI-focused trades—is on pace for its worst month since December 2023.

Meanwhile, capital appears to be rotating back into crypto. Bitcoin has gained roughly 10% this month, while Ether is up about 20%.

Saylor criticizes BIP 110
Strategy Executive Chairman Michael Saylor described Bitcoin Improvement Proposal 110 as “iatrogenic,” suggesting it could be harmful in its design.

His remarks drew pushback from supporters, including Matthew Kratter and Luke Dashjr.

U.S. strikes Iran, markets steady
The U.S. carried out precision strikes on Iran’s coastal defense and missile systems on Greater Tunb Island, according to Central Command.

Markets showed little reaction, with Bitcoin holding near $64,500, oil prices flat, and Nasdaq futures slightly higher.

Hassett: No need for rate hikes
National Economic Council Director Kevin Hassett said recent economic data does not justify raising interest rates.

He also mentioned a recent discussion with Fed Chair Kevin Warsh and expressed confidence in the Fed’s policy direction.

PayPal jumps on acquisition bid
PayPal shares surged more than 21% in premarket trading after reports that Stripe and Advent International offered $60.50 per share, valuing the company at over $53 billion.

If completed, the deal would combine two major payments firms expanding into stablecoins and blockchain-based settlement. PayPal’s PYUSD stablecoin has a market cap of about $2.8 billion.

ETF inflows return with price rebound
Bitcoin and Ether ETFs both saw renewed inflows after a sharp outflow session. BlackRock’s IBIT led Bitcoin ETF gains with about $139 million, while Fidelity’s FBTC added roughly $21 million.

On the Ether side, BlackRock’s ETHA accounted for the entire $58 million inflow.

The rebound aligned with price gains, with Bitcoin ETFs rising nearly 4% and Ether funds about 6%—their strongest daily move in weeks.

Total Bitcoin ETF assets climbed back to around $78 billion, while Ether ETF assets surpassed $10 billion. However, July flows remain volatile, swinging between inflows and outflows without a clear trend.