Bitcoin Blasts Past $65K as Soft Inflation Ignites Stocks, Gold and Crypto

Producer Prices Cool, Fed Bets Shift

The Bureau of Labor Statistics released the June Producer Price Index (PPI) at 8:30 a.m. Eastern time. The headline number came in at 5.5%, below consensus estimates and down from prior readings.

Lower producer prices tend to feed into consumer inflation over time. With June CPI already showing signs of moderation, traders read the PPI print as another sign the Federal Reserve has room to cut rates later this year. Treasury yields eased slightly in early trading, a move that typically supports higher valuations for stocks and crypto.

Companies with heavy energy or commodity costs, including manufacturers and transportation firms, priced in some margin relief. The dollar index softened too, giving a lift to dollar-denominated assets like gold and bitcoin.

Bitcoin Breaks $65,000

Bitcoin opened the session near $64,989 and pushed as high as $65,494 at 8:30 a.m. EDT on Wednesday, clearing the $65,000 level for the first time in recent sessions.

Trading volume stayed heavy through the move, a signal that institutional buyers and retail traders were both active. Bitcoin’s climb tracked the same forces lifting stocks: lower expected borrowing costs and improving liquidity sentiment. Altcoins followed bitcoin’s lead, though bitcoin’s share of total crypto market value stayed elevated as investors favored the most liquid token. While BTC is up more than 5% this week, ethereum ( ETH) is up more than 10% over the seven-day timeframe.

Profit-taking near the highs, combined with pressure from rising oil prices, kept several digital assets from holding their session peaks.

Chip Stocks Lead Wall Street Higher

U.S. equity futures rose in early trading. S&P 500 futures gained between 0.03% and 0.38%, trading near 7,543 to 7,593. Nasdaq-100 futures climbed 0.24% to 0.90%. Dow Jones Industrial Average futures held mostly flat near 52,500 to 52,789.

Semiconductor stocks led the advance. Nvidia, AMD and Broadcom posted solid gains on continued demand for artificial intelligence (AI) infrastructure. Memory, foundry and networking suppliers outperformed the broader market, a sign that the buying was tied to structural demand rather than a short-term bounce.

Energy stocks traded mixed. Producers benefited from higher crude prices while airlines and consumer-facing companies faced added cost pressure. Chip-related names in Taiwan and South Korea also gained, extending the rally across global markets.

Oil Stays Elevated on Hormuz Risk

Brent crude traded around $84 a barrel at 8:30 a.m. EDT. West Texas Intermediate (WTI) held near $79.54. Both benchmarks stayed well above recent averages as tensions between the U.S. and Iran have continued.

The Strait of Hormuz, which carries roughly 20% of the world’s oil supply, remained the focal point. Reports of military activity and incidents involving commercial tankers pushed up shipping insurance costs and led some vessels to reroute.

Gold traded in a narrow range between $4,050 and $4,064 an ounce, supported by both the rate outlook and demand for a hedge against geopolitical risk. The yellow precious metal, per troy ounce, is up 0.23% on the day this morning.

What It All Means

The morning hours so far showed two forces pulling markets in different directions. Cooling U.S. inflation data gave investors reason to expect easier Fed policy. Oil above $85 a barrel and the ongoing war have given them two strong reasons to stay cautious.

That split kept gains concentrated in chip stocks and bitcoin rather than spreading across the broader market. Traders believe sustained oil prices near current levels could show up in future inflation data, limiting how much room the Fed actually has to cut rates. Still, it looks like a coin toss from here.