Bitcoin Nears $64,000 as US Inflation Outlook and Treasury Yields Boost Crypto Market

The Bitcoin price has recovered to nearly $64,000, marking a modest rebound in the cryptocurrency market. According to The Economic Times, Bitcoin was trading at around $64,246, up 1.44% over the previous 24 hours. Ethereum also gained, rising by 0.43% to approximately $1,899.

Several major altcoins showed more modest moves, with Solana, Tron, and Hyperliquid gaining up to 1%, while BNB, XRP, Dogecoin, and Cardano declined by as much as 1.37%. The recovery is not uniform across the crypto market, with investors continuing to distinguish between individual digital assets.

The recovery has been attributed to a more favorable inflation outlook in the US, which has reduced pressure on the Federal Reserve to keep monetary policy restrictive. Cooling inflation can reduce pressure on the Fed to raise interest rates, making riskier assets relatively more attractive. Cryptocurrencies are particularly sensitive to changes in interest-rate expectations.

Avinash Shekhar, co-founder and CEO of Pi42, pointed out that Bitcoin's return towards $64,000 reflected improving sentiment as expectations of further US monetary tightening eased. He also noted the impact of cooling inflation and declining Treasury yields on creating a more supportive liquidity environment for digital assets.