Cryptocurrencies Soar as Inflation Fears Ease

The Federal Reserve's decision to maintain its target range for the federal funds rate at 3.5 to 3.75 percent, with three members voting for a hike, has not deterred cryptocurrency markets from trading in the green. A softer-than-expected core PCE reading and a decline in global crude oil prices have shifted market focus away from inflation combat and towards the tech sector.

The U.S. Bureau of Economic Analysis reported that the core PCE price index increased by 0.1 percent in June, below the expected 0.2 percent rise. This led to a decrease in expectations of an interest rate hike in September, with the CME FedWatch tool indicating a 41 percent chance of a pause.

Cryptocurrency markets responded positively to this news, with overall market capitalization increasing by 0.64 percent overnight to $2.21 trillion. Bitcoin (BTC) traded between $65,071 and $63,206 during the same period, while Ethereum (ETH) rose by 1.2 percent to $1,920.53.

Other notable performers included BNB, which rallied 3.5 percent overnight, and XRP, which added 1.4 percent. Solana (SOL), however, slipped from its all-time high of $294.33 recorded on January 19, 2025, to trade at $74.53.