Bitcoin climbs above $65K on reduced inflation and Clarity Act boost

Bitcoin rose above the $65,000 mark on Wednesday after the latest US wholesale inflation data came in cooler than expected.

The Producer Price Index (PPI) fell 0.3% in June from the previous month, marking its largest monthly decline since April 2025. On an annual basis, headline PPI dropped to 5.5%, below economists' expectations of 6.2%.

Core PPI, which excludes food and energy prices, also slowed to 4.7%, missing forecasts of 5.2%. The moderation reflected easing wholesale price pressure, particularly from lower energy and trade services costs.

The broader crypto market reacted positively to the inflation report, with Ethereum (ETH), XRP and Solana (SOL) rising 3%, 2% and 1.3%, respectively, following the release. The recovery in crypto also follows Tuesday's cooler-than-expected Consumer Price Index (CPI) report, giving investors two consecutive signs that inflationary pressure may be easing.

Bitcoin's sustained recovery hinges on Fed policy decision, easing global tensions

The back-to-back releases have fueled expectations that the Federal Reserve (Fed) could maintain a less restrictive policy stance, according to Bitunix analyst Dean Chen.

"The latest US inflation data has changed the short-term market narrative, but it has not fully resolved the debate over monetary policy direction," Chen wrote in a Wednesday report.

The firm stated that much of June's inflation slowdown was driven by falling energy prices rather than broad-based disinflation. Energy prices declined 5.7% during the month, while gasoline prices fell 9.7%, providing relief to headline inflation.

However, prices of shelter, food and core services continued to rise, suggesting that underlying inflationary pressure remains.

Bitunix also highlighted a shift in the Fed's communication strategy, arguing that policymakers are placing greater emphasis on incoming economic data rather than providing explicit forward guidance.

"Individual economic releases are likely to carry greater market significance," the report stated, adding that inflation, employment and growth figures are expected to become increasingly important catalysts for financial markets.

Despite the improving inflation outlook, Bitunix cautioned that several macroeconomic risks could continue driving volatility across crypto markets. The firm noted that escalating geopolitical tensions in the Middle East could push energy prices higher and reignite inflation, while renewed concerns over Japan's Yen carry trade could tighten global liquidity and weigh on risk assets.

The report added that Bitcoin's longer-term direction will depend on whether inflation continues to moderate. It also hinges on whether the Fed maintains its data-dependent policy approach and if global liquidity conditions remain supportive.

"Bitcoin sentiment has improved after the CPI release, but future price action will depend on Fed policy signals, inflation trends, and broader risk appetite," Chen stated.

Trump to meet with senators to discuss Clarity Act

Additionally, a report of President Donald Trump meeting with senators in the White House to discuss the Clarity Act is also improving market sentiment.

According to Politico, Sen. Bernie Moreno said senators will update the President concerning the bill’s progress and its “path to success.”

While lawmakers are pushing to pass the bill before the August recess, a few Democratic senators want an ethics provision included in the landmark crypto bill, especially after Trump disclosed earnings of over a billion dollars from crypto-related affiliations. The move will prevent senior government officials from having business interests in crypto platforms.

Bitcoin is trading at $65,020, up 0.6% over the past 24 hours at the time of writing.