US June CPI Drop Could Ignite Bitcoin and Crypto Rally
US June CPI data due tonight could steer Federal Reserve policy and trigger a new Bitcoin and broader crypto rally. A drop below 2.4% may prompt earlier Fed rate cuts, boosting market liquidity and risk appetite. Bitcoin recently broke above $120,000, with analysts eyeing $130,000 by July-end, while Ethereum and XRP stand to benefit from clearer regulatory frameworks emerging during “Crypto Week”. On-chain metrics show a 14-year whale moving 20,000 BTC and a declining spot premium, signaling profit-taking but healthy futures support. Traders should watch the June CPI release, Fed cues and key digital asset bills in Congress, including the CLARITY Act, Anti-CBDC Surveillance State Act and GENIUS Act, as they shape short-term volatility and medium-term market trends.
Bullish
By potentially lowering the June CPI result below expectations, the Federal Reserve may accelerate rate cuts, injecting liquidity that historically boosts risk assets like Bitcoin. On-chain signs of whale activity and robust futures support reinforce bullish momentum, while emerging crypto legislation reduces regulatory uncertainty. Together, these factors suggest strong upside potential for Bitcoin in both the short and medium term, extending to altcoins like Ethereum and XRP.