Bitcoin Holds $118K as Inflation Cools, Ethereum and Dogecoin Lead Market Gains
Bitcoin stayed firm above $118,000 during Wednesday’s Asian trading session, as softer-than-expected U.S. inflation data fueled investor optimism over a possible Federal Reserve rate cut in September. Ethereum and Dogecoin led altcoins higher, extending the crypto market’s recent strength.
The U.S. Consumer Price Index (CPI) for June revealed core inflation rose just 0.1% for the fifth straight month — reinforcing a sustained disinflationary trend. The print increased market confidence that the Fed could begin cutting rates within months.
“This inflation report is exactly what the crypto market wanted,” said Eugene Cheung, Chief Commercial Officer at OSL. “It keeps the September rate cut in play and strengthens the case for renewed institutional inflows into digital assets.”
Despite a delay in progress on the bipartisan GENIUS Act — which would establish rules for stablecoins — Bitcoin held its ground, signaling investor resilience. Lawmakers are expected to reintroduce the bill in the coming weeks.
ETH, DOGE See Outperformance Amid Altcoin Stability
Ethereum (ETH) climbed above $3,100, supported by a steady stream of inflows into spot ETH ETFs and expectations around Ethereum’s role in future tokenized finance. Dogecoin (DOGE) jumped 2.7% to $0.2133, extending its weekly rally to nearly 15%.
Other major tokens traded mixed: Solana (SOL) held near $163, XRP hovered below $2.92, BNB stabilized at $688, and TRON (TRX) remained flat at $0.03.
ETF Inflows Continue to Accelerate
Spot Bitcoin ETFs recorded a ninth straight day of inflows, adding $403 million on Tuesday. BlackRock’s IBIT fund attracted $416 million, offsetting a combined $70 million in outflows from GBTC, FBTC, and ARKB, according to SoSoValue.
Ethereum ETFs also saw their eighth consecutive day of net inflows, totaling $192 million.
Traditional Markets Stumble, Crypto Stays Strong
Asian stock markets and U.S. futures fell slightly as traders remained cautious on the macro outlook. Still, digital assets appeared decoupled from equities, signaling growing investor interest in crypto as an alternative asset class.
Dallas Fed President Lorie Logan urged patience, noting the central bank still needs more data confirming softening inflation and labor market conditions before adjusting rates.
But bullish sentiment in crypto continues to build.
“Holding above $118,000 in the face of political and macro uncertainty is a strong signal,” said Nick Ruck, Director at LVRG Research. “Crypto looks well-positioned for continued upside heading into the second half of 2025.”
