Live updates: Bitcoin price (BTC) higher after CPI declined in June

Trump reinstated the Hormuz blockade, sending oil higher, reversing the peace trade that helped bitcoin recover in early July.

South Korean memory chip maker SK Hynix (SKHY) has surged 27% on Tuesday to $193.50.

The move comes after some shaky price action following its U.S. IPO at $149 late last week.

The Nasdaq itself is higher by 1% on Tuesday, with U.S.-based memory chipmaker Micron Technology (MU) up 4.9%.

As for that other high-profile IPO, Space X (SPCX) slipped another 2.2% on Tuesday, now trading only barely above its $135 offering price at $136.08.

"At 3 p.m. ET today, U.S. Central Command forces began launching an additional round of strikes against Iran to continue degrading Iranian capabilities used to attack commercial shipping in the Strait of Hormuz," the U.S. Central Command posted to X minutes ago.

"The strikes are taking place as American forces prepare to resume the naval blockade against Iranian ports and coastal areas. The blockade goes into effect at 4 p.m. ET."

Risk markets aren't really reacting, the Nasdaq remaining higher by 1% and bitcoin up by nearly 4% over the past 24 hours at $64,500.

WTI crude oil is trading just shy of $80 per barrel, up 2% for the day.

New York State Governor Kathy Hochul, on Tuesday morning, signed an executive order barring the construction of data centers using 50 megawatts or more of power per year.

The Empire State thus becomes the first U.S. state to impose such a ban.

"The intellectual version of a COVID Mask," wrote investor Chamath Palihapitiya , "You may think you’re doing something smart but you’re not."

Former bitcoin miner turned AI data center player, TeraWulf (WULF) is lower by 7% to $19.44 on the news, given its sizable New York operations.

Needham, though, is out with a note reiterating its buy rating and $33 price target. The company's Lake Mariner capacity is not expected to be impacted as that construction is already underway, said Needham. TeraWulf's Cayuga site is likely to face impact, though this is not part of the company's near-term pipeline due to local permitting issues.

Nearly two hours into the Congressional testimony of Kevin Warsh, the Fed chair was finally asked about this morning's surprisingly soft inflation data.

"It's one data point," said Warsh. "I don't want to overread or cherry-pick data."

"There might be some who say, 'Look, mission accomplished, everything is swell.' That is not my view."

Read more: U.S. June CPI fell 0.4%, likely cooling move toward Fed rate hikes

Seemingly set to challenge the $65,000 level minutes ago, bitcoin has pulled back a hair, still at $64,500, up 3% over the past 24 hours.

The U.S. and UK are taking another step toward making tokenized finance work across borders. A new set of recommendations from the Transatlantic Taskforce for Markets of the Future calls for closer cooperation on tokenized securities, stablecoins and digital asset regulation, while also proposing ways to make cross-border capital raising easier.

The roadmap includes plans for industry-led tokenization pilots, greater coordination between regulators and a review of global banking standards for cryptoassets. While the recommendations aren't binding, they signal that both governments are looking to build a more connected framework for digital finance as adoption continues to grow.

Goldman Sachs, JPMorgan Chase and Bank of America all pointed to the rapid buildout of AI infrastructure as a key driver of corporate investment and financing demand during their latest earnings calls, though each bank emphasized different aspects of the trend.

Goldman Sachs offered the strongest endorsement, with CEO David Solomon describing AI infrastructure as being in the "early innings" of a multi-year investment cycle. He said the expansion is fueling mergers and acquisitions, debt and equity issuance and lending opportunities, adding that Goldman expects to finance much of the infrastructure buildout despite the likelihood of periodic slowdowns as the market matures. Executives also described the current environment as an "AI capex super cycle" driving financing demand across industries and regions.

JPMorgan highlighted AI infrastructure as a major source of long-term capital demand. CEO Jamie Dimon cited investments by hyperscalers alongside security and other infrastructure needs as reasons the bank wants to preserve capital to support clients rather than deploy more cash toward share buybacks. JPM also pointed to AI-driven spending on data centers and related construction as evidence that the investment cycle is spreading beyond the technology sector into the broader economy.

Bank of America likewise said AI-related capital expenditures are supporting investment banking activity and infrastructure financing. Executives cited continued demand for financing tied to digital infrastructure, power and energy projects needed to support AI workloads, while also discussing the bank's use of AI to improve cash management and client services.

True to form, Fed Chairman Kevin Warsh — who has made it a priority for the central bank to get out of the public forecasting game — isn't opining on where he thinks monetary policy may be headed in the foreseeable future.

Instead, he's using the occasion of his Congressional testimony to focus on the larger picture of his commitment to bringing inflation below the Fed's 2% target.

That could be read as either hawkish or dovish, but, for now, markets seem focused on the implications of this morning's slow inflation data for June.

Stocks are at session highs, the Nasdaq up 1%, and bond yields remain sharply lower.

Bitcoin (BTC) is also near a session high, up 2.7% at $64,300. Ether (ETH) is up 5.4% to $1,874.

Saying he still bears the scars of the 2008 financial crisis and resultant central bank response, Fed Chair Kevin Warsh — responding to questioning in his Congressional testimony — says he does not want the Federal Reserve to be in the "bailout business."

Crypto would be included in that, he added.

The economy is in good shape, and financial markets reflect that, said Kevin Warsh during the Q&A at his Congressional testimony.

Housing, though, is a different story, he said, noting the relatively high interest rates on 30-year mortgages.

Don't expect that to mean he's mulling a rate cut(s), though. Warsh went on to say that inflation, not the Fed's policy rate, is behind the recent surge in long-term interest rates.

There are many things out of the Fed's control — overseas wars among them — said Fed Chair Kevin Warsh as the Q&A began in his Congressional testimony.

Inflation, though, is a choice, he said. Ultimately, he argued, monetary policy determines the rate of inflation.

Warsh took the occasion of questioning by Banking Committee Chair French Hill to remind that he was not a fan of the Fed's Covid-era framework that allowed inflation to run hot as a way of avoiding the potential pitfalls of potential deflation.

Crypto-related stocks are higher across the board early Tuesday as bitcoin rises following a softer-than-expected U.S. inflation report for June.

Not joining, though, is stablecoin issuer Circle Financial (CRCL) after Mizuho downgraded the stock to underperform and trimmed its price target to $50.

CRCL is lower by 2.9% to $61.16.

Among the reasons cited by analyst Dan Dolev was the recent launch of competitor Open USD, which the bank expects will weigh on Circle's medium-term profitability.

Fed Governor Chris Waller yesterday — previously thought to lean at least a bit dovish — more or less said he would be inclined to raise interest rates at the Fed's meeting this month if core inflation didn't immediately begin to recede.

His remarks sparked a furious rush by traders to place bets on a rate hike in late July, the odds at one point rising to nearly 50%.

This morning's June CPI data , however, showed the core rate of inflation flat in July against forecasts for a 0.2% rise. The year-over-year rate of core CPI fell to 2.6% versus forecasts for 2.8%.

A check now finds July rate hike odds at just 12%. Interestingly, the chances of a September rate hike haven't budged — still at 51.2%.

In prepared remarks ahead of Congressional testimony to begin at 10 am ET, Federal Reserve Chairman Kevin Warsh said high inflation has burdened households and businesses, and that the Fed has “no tolerance for persistently elevated inflation.”

The Fed held the federal funds rate at 3.5% to 3.75% at its June meeting — Warsh's first as chairman — but the hawkish tone had markets in a rush to price in rate hikes as soon as the central bank's upcoming meeting in July. This morning's soft inflation data , for the moment, has derailed that move.

Productivity growth has been strong, even before potential gains from AI adoption, said Warsh. Business investment is accelerating, led by data centers and AI-related equipment and software. Equipment investment rose about 8% over the year through the first quarter, while high-tech spending increased nearly 25% over four quarters. The Fed is monitoring the implications of these developments for inflation and the labor market. Warsh has also appointed task forces to review productivity, inflation drivers and the Fed’s frameworks for achieving price stability.

The fast move towards Fed rate hikes as soon as this month appears like it can take a breather.

June CPI declined a large 0.4% versus expectations for a fall of just 0.1%, and May's rise of 0.5%.

Core CPI, which excludes food and energy costs, was flat in June against forecasts for a rise 0.2% and May's 0.2% gain.

CPI year-over-year rose just 3.5% versus 3.8% forecast and 4.2% in May. Core CPI year-over-year rose 2.6% against expectations for 2.8% and May's 2.9%.

Bitcoin was adding to gains, up 2% over the past 24 hours to $63,400.

CleanSpark (CLSK) announced the signing of a 20-year lease agreement with what it describes as a "high-investment grade, leading technology company" at its Sandersville, GA campus.

The lease is expected to generate $6.6 billion of revenue over that term. If two five-year extension options are exercised, it could mean $11.6 billion of revenue.

Shares are higher by 14% pre-market.

It's shaping up to be a rough day for the software sector following preliminary second-quarter results from IBM (IBM).

Revenue of $17.2 billion was well shy of Street forecasts of $17.9 billion, as customers shifted spending from software to servers and storage, and memory, said CEO Arvind Krishna in a statement. "We did not anticipate the magnitude of the capex reprioritization."

The price of bitcoin (BTC) in recent months has often been highly correlated (nearly always to the downside) with the software sector. For now, bitcoin is holding small overnight gains at $62,800.

Trading volume across U.S. spot bitcoin ETFs has fallen 78% from its peak, dropping to about $1.25 billion a day from $5.8 billion, according to Glassnode. That is below where volume sat when the funds launched in early 2024.

The collapse is a measure of attention, not just price. Volume tracks how much money is actively moving through the funds, and it has thinned to a cycle low as bitcoin has drifted between roughly $59,000 and $66,000 for a month.

Glassnode said a sustained recovery in bitcoin's momentum would likely need attention and participation to return from other asset classes, the same rotation into AI and chip stocks that has pulled institutional flows away all quarter.

The volume drop lines up with the flow data. U.S. spot bitcoin ETFs lost $4.5 billion in June, their worst month since launch, and while daily flows turned briefly positive in early July, the broader bid has not come back. Bitcoin traded near $62,700 on Tuesday, roughly flat on the day, per CoinDesk data.

Bitcoin, gold, and silver have all recorded modest gains over the last 24 hours ahead of the latest U.S. CPI report.

Bitcoin is trading above $62,700, gold above $4,000 an ounce, and silver above $58.

Meanwhile, the DXY has slipped to around 101, while U.S. Treasuries are also slightly lower ahead of the report.

WTI crude oil has surged 20% from its July low, climbing above $80 a barrel and gaining more than 3% in the past 24 hours as the conflict between the U.S. and Iran continues.

Rising oil prices are inflationary, driving up food and energy costs and increasing the likelihood of further interest rate hikes.

U.S. CPI is the key focus on Tuesday, with markets pricing a 40% chance of a rate hike, according to the CME FedWatch Tool, while the 10-year Treasury yield remains above 4.6%.

Headline inflation is expected to slow to 3.8% year-on-year from 4.2%, with prices falling 0.1% month on month. Core inflation is expected to remain steady at 2.9% annually and 0.2% monthly. An upside surprise could further lift yields and support the dollar.

Bitcoin traded near $62,600 on Tuesday, down 0.3% over 24 hours and roughly flat on the week, per CoinDesk data. The market is steady on the surface but the macro backdrop underneath it has turned.

President Trump reinstated the U.S. blockade of Iranian ships through the Strait of Hormuz and demanded a 20% fee on all other cargo moving through the waterway, reviving a conflict that a June peace deal had appeared to settle.

Brent crude rose as much as 2.8% to about $85 a barrel, its second day of gains, and traders lifted bets on a Fed rate hike.

That combination runs directly against crypto. Oil pushing higher feeds the inflation pressure that kept the Fed hawkish through June, and the easing of that pressure was much of what let bitcoin recover from its late-June lows near $58,000. The peace trade is now unwinding, and rate-hike odds are climbing back.

Bitcoin has spent a month between roughly $59,000 and $66,000, and the majors are mixed. Ether held near $1,783 and is up on the week, while Solana, XRP and Hyperliquid are all down 5% or more over seven days.

Today's June inflation print is the more immediate test. A soft number would ease the rate-hike pressure the Iran news just revived. A hot one, especially with oil climbing, would stack a second hawkish signal onto the first, two weeks before the Fed meets July 28 and 29.

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.

Disclosure & Polices : CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies . CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of Bullish (NYSE:BLSH), an institutionally focused global digital asset platform that provides market infrastructure and information services. Bullish owns and invests in digital asset businesses and digital assets and CoinDesk employees, including journalists, may receive Bullish equity-based compensation.

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