Live updates: Bitcoin tops $65,000 as markets get more good inflation news

U.S. spot bitcoin ETFs took in about $181 million on Tuesday, a day after shedding roughly $425 million, per SoSoValue data. Ether ETFs added about $58 million.

“Compared with the last reporting period, price growth was the same or slower in all Districts,” according to the National Summary of the Federal Reserve’s just-released Beige Book .

Combined with soft inflation reports from the past two days and dovish comments from New York Fed President John Williams, the news would appear to take any chance of a July rate hike off the table.

Additionally, odds of a boost in rates by September have dipped to 48% from nearly 70% one week ago, per CME FedWatch .

The two-year U.S. Treasury yield has slipped further, now down 7 basis points on the day to 4.12%. Bitcoin continues in a tight range on both sides of the $65,000 level.

“One of the biggest Driving Forces in the Future for Jobs, are Data Centers,” said President Trump in a Truth Social post .

He said New York Governor Kathy Hochul’s executive action to halt construction of new data centers in that state was a “terrible decision.”

“Data Centers are tremendous WINS for the States and Communities that are lucky enough to get them.”

Down across the board earlier, former bitcoin miners turned data center players appear to have gotten a boost from the president’s post. Hut 8 (HUT) is leading gains with a 5.2% advance. CleanSpark (CLSK) is up 4%, IREN (IREN) is up 3%, and TeraWulf (WULF) — probably most exposed to New York’s political situation — is up 2.7%.

Market maker Wintermute cautioned that bitcoin’s recent rally above $65,000 faces a key technical hurdle. It noted that $65,000 has repeatedly acted as resistance for bitcoin and profit-taking has already emerged.

The firm said investors are now watching Thursday's PCE inflation report, the end-of-quarter options expiry, and developments in the Iran conflict, warning that one favorable inflation reading does not yet signal a lasting shift in market sentiment.

On day two of his Congressional testimony — this time before the Senate — Fed Chairman Kevin Warsh conceded that AI-related demand could cause price pressures in the coming months.

He declined to call such one-time change in prices inflationary though, thus suggesting that it may not require a Fed policy response (i.e., higher rates).

He expects a supply response to the demand pressure, which ultimately would be disinflationary.

“This is one of the good family fights,” said Warsh, who suspects not all of his colleagues at the Fed will agree.

Lower by another 2% on Wednesday, Elon Musk’s Space X (SPCX) is trading at $133.35 — below its $135 IPO price for the first time.

In the excitement just after the IPO roughly one month ago, SPCX had traded as high as $225.

Anthropic is taking another step toward a potential stock market debut, with banks leading its planned IPO arranging meetings between the AI startup and investors in the coming weeks, according to a Bloomberg report .

The Claude chatbot maker is considering going public as soon as October, although the timing and details of the offering remain under discussion.

If it proceeds, Anthropic would join a growing wave of artificial intelligence companies tapping public markets as investor demand for AI-related stocks continues to build.

ORANGE JUICE has raised $40 million to launch a company that aims to build a bitcoin-focused private equity firm.

The founding group is made up of partners from ego death capital , including Jeff Booth, Lyn Alden, Nico Lechuga, and Andi Pitt.

Grupo Salinas Chairman Ricardo Salinas is an anchor investor.

“ORANGE JUICE will initially acquire stable, cash-flow-generating businesses with $1 million to $10 million in annual cash flow across a range of sectors,” read the press release . “Cash generated by the businesses will be reinvested into acquisitions or the bitcoin treasury, with conservative use of leverage and capital markets.”

The revenge of the Mag 7 (and maybe crypto) continued in early U.S. trading on Wednesday.

The AI mania momentum names are tumbling again, including Micron, SanDisk, Dell, Intel, and Marvell — all down 5%-12%.

The Nasdaq, though, is higher by 0.3% as many of the Mag 7 names continue to claw back from recent serious underperformance. Microsoft, Apple, Google, Meta, and Amazon are ahead by 2%-4%, while Nvidia and Tesla are posting only very modest declines.

Also, crypto continues its rebound after recent massive underperformance, with bitcoin, ether, and XRP all up by 2%-3% and nearing one-month highs.

“The bid at 1.21X IV15 [is] simply too low,” wrote Michael Burry , an investor in PayPal (PYPL).

“IV” means intrinsic value. “IV15” would be the price a minority shareholder might pay based on 15X earnings, with no control premium.

Read more: Stripe mounts blockbuster $53 billion bid to buy PayPal

Burry believes a buyout price should be roughly $100 per share, rather than the $60.50 per share represented by Stripe’s $53 billion bid.

“With control over the cash flows, those businesses and the personnel, the new owner will have many levers to increase value and make for a better overall business,” Burry continued. “I am not selling, and I believe it is only an opening bid.”

PYPL is higher by 16.3% to $55.09.

The Depository Trust & Clearing Corp. today will convert a group of shares and Treasurys into digital tokens, the WSJ reported .

Goldman Sachs, BlackRock, JPMorgan, and Vanguard are among the nearly 40 tradfi players taking part in the trial run, the story continued.

Among the assets to be tokenized: Microsoft, Circle, Invesco’s QQQ, State Street’s SPDR SPY, and iShares’ 0-3 Month Treasury Bond ETF.

“There are encouraging reasons to expect that inflation has peaked and should edge down in coming quarters,” said FRBNY President John Williams in a Wednesday morning speech .

“I expect overall inflation to decline to around [3.25%] percent by year-end, then continue on a glide path toward our 2 percent goal in 2027 and land on target in 2028.”

Combined with the soft PPI data reported minutes ago, Williams’ dovish remarks appear to have helped push bitcoin above $65,000 for the first time in several weeks.

U.S. June PPI fell 0.3% versus a forecast for a flat reading and May’s 0.6% rise. On a year-over-year basis, PPI rose 5.5% against expectations for 6.2% and May’s 6%.

Core PPI, which excludes food and energy costs, rose just 0.2% in June versus forecasts for 0.4% and May’s 0.1%. Core PPI year-over-year rose 4.7% versus an expected 5.2% and May’s 4.6%.

Bitcoin is adding a bit to earlier gains, now trading at $64,800, up 2.1% over the past 24 hours. Nasdaq 100 futures are higher by 0.5%.

The U.S. 10-year Treasury yield has fallen back to 4.58% from 4.61% ahead of the number. The 2-year yield has dipped to 4.17% from 4.21%.

Halfway through July, the Dow Jones US Thematic Market Neutral Momentum Index (a fancy way of saying AI favorites) is headed for its worst month since December 2023, according to Bloomberg .

What happens next is up for debate, but what has happened: the semblance of some return of speculative capital to crypto.

At cycle lows as July got underway, bitcoin (BTC) is up about 10% so far for the month and ether (ETH) is higher by about 20%.

“BIP 110: Bitcoin Iatrogenic Proposal,” tweeted out Strategy Executive Chairman Michael Saylor hours ago.

For those without a dictionary close by: Iatrogenic = harm caused by the treatment itself .

The tweet naturally drew the ire of BIP 110 proponents like Matthew Kratter and Luke Dashjr .

Read more: Bitcoin's BIP-110 sparked a fight over who gets to decide the future of Bitcoin

The U.S. completed a morning round of strikes against Iran minutes ago, the U.S. Central Command announced .

“CENTCOM launched precision munitions against coastal defense systems and cruise missile storage and launch sites on Greater Tunb Island during the 90-minute wave. The strikes further degraded Iran’s ability to attack commercial shipping in the Strait of Hormuz.”

The news isn’t moving markets, with Nasdaq 100 futures still posting modest gains, oil about flat, and bitcoin holding in the $64,500 area.

The latest data shows no justification for Fed rate hikes, said Kevin Hassett, the director of the White House’s National Economic Council.

Hassett said he had a good conversation with Fed Chair Kevin Warsh a few days ago and believes Warsh will lead the central bank to the right path on interest rates.

The latest data Hassett is referring to could mean yesterday’s far slower than expected CPI report. This morning will bring the June PPI report. Warsh, meanwhile, is set to begin day two of Congressional testimony on the economy.

Shares of PayPal are up more than 21% in premarket trading at $57.3 after Reuters said Stripe and Advent International offered $60.50 a share for the firm, valuing the payments company at more than $53 billion .

The offer represents a 28% premium to PayPal’s Tuesday close and includes roughly $50 billion in committed bank financing. Stripe and Advent would hold equal stakes in the company if the deal proceeds.

The acquisition would combine two of the largest payments firms expanding into stablecoins and blockchain-based settlement. PayPal’s PYUSD stablecoin has a $2.8 billion market capitalization.

Reuters cited two people familiar with the transaction.

BlackRock's IBIT drove almost all of it, pulling in roughly $139 million, with Fidelity's FBTC adding about $21 million. No bitcoin fund lost money. On the ether side, BlackRock's ETHA accounted for the entire net figure at about $58 million, with every other fund flat.

The swing tracks the price. Bitcoin ETFs rose close to 4% on the day and ether funds about 6%, the strongest single-session move in weeks.

Total bitcoin ETF assets climbed back to roughly $78 billion from about $75 billion, and ether ETF assets crossed $10 billion.

July's flows have been choppy rather than directional. Bitcoin ETFs have swung between inflows and outflows nearly every other session this month, with July 13's $425 million redemption the largest of the run and Tuesday's rebound the second largest inflow. Neither side has held for more than three days.

CEX trading volumes rose for the first time in five months in June, with spot climbing 15.3% to $1.11T and RWA perpetual volumes surging to a record $311B.

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