Bitcoin Holds Steady Near $118K as ETF Inflows Continue and CPI Data Fuels Rate Cut Hopes

Bitcoin (BTC) traded steadily around $118,000 during Wednesday’s Asian session, consolidating recent gains amid renewed optimism sparked by June’s U.S. CPI report, which pointed to continued disinflation. The soft inflation print prompted traders to increase bets on a potential interest rate cut by the Federal Reserve in September.

The U.S. Core CPI rose just 0.1% for the fifth consecutive month, reinforcing bullish sentiment in the crypto space even as broader equity markets wobbled.

“This data is positive for crypto,” said Eugene Cheung, Chief Commercial Officer at OSL. “It increases the likelihood of a Fed rate cut in September, which could unlock more institutional capital for digital assets.”

Cheung added that Bitcoin’s resilience — despite the GENIUS Act failing a procedural vote — underscores market optimism. The legislative proposal is expected to be revised and brought back for a vote in the coming weeks.

Meanwhile, Ethereum (ETH) reclaimed the $3,100 level, buoyed by inflows into spot ETFs and optimism following the passage of a stablecoin regulatory bill, further cementing ETH’s role as a foundation for tokenized U.S. dollar assets.

Altcoins Show Strength

Dogecoin (DOGE) posted a 2.7% gain to trade around $0.2133, extending its weekly advance to nearly 15%. Solana (SOL) held firm near $163, and XRP traded close to $2.92, reflecting consistent investor interest. Binance Coin (BNB) hovered near $688, while TRON’s TRX remained flat around $0.03.

ETF Inflows Signal Sustained Institutional Appetite

Institutional interest continued to climb, with U.S. spot Bitcoin ETFs recording a ninth straight day of net inflows. On Tuesday alone, the sector added $403 million in new capital. BlackRock’s IBIT accounted for $416 million in inflows, more than offsetting outflows totaling $70 million from GBTC, FBTC, and ARKB, according to SoSoValue.

Ether-based ETFs also saw strong demand, attracting $192 million in net inflows — their eighth consecutive day in the green.

Macro Headwinds Fade as Crypto Sentiment Strengthens

While Asian equity markets declined and U.S. stock futures softened amid concerns about inflation persistence and potential tariff-related price pressures, crypto traders appeared largely unfazed.

Federal Reserve officials remain cautious. Dallas Fed President Lorie Logan emphasized that rates may stay elevated unless the labor market or inflation metrics soften further.

Still, many in the digital asset space see the macro environment as increasingly supportive.

“Despite temporary setbacks like the GENIUS Act vote, Bitcoin has managed to hold firm above $118,000,” said Nick Ruck, Director at LVRG Research. “We’re confident the current bull cycle has further room to run through the second half of 2025.”