Bitcoin tops US$64K after inflation cools

• Bitcoin (CRYPTO:BTC) climbed above US$64,000 after softer U.S. inflation data.
• The data reduced expectations of a July Federal Reserve interest rate hike.
• Traders now await the Fed's next policy meeting for further market direction.

Bitcoin (CRYPTO:BTC) rose above US$64,000 after lower-than-expected U.S. inflation reduced expectations that the Federal Reserve will raise interest rates this month.

The June Consumer Price Index rose 3.5% from a year earlier, down from 4.2% in May, while core inflation held at 2.6%.

Bitcoin climbed to about US$64,700 as traders lowered the chance of a July rate hike from about 35% to 10%.

The rally reflected stronger demand for risk assets after the inflation report, and Bitcoin is not linked to a listed company so no share price applies.

Higher interest rates often reduce demand for assets such as cryptocurrencies because they increase borrowing costs and strengthen the U.S. dollar.

Investors will now watch the Federal Reserve's July meeting and future inflation reports for signs of where interest rates may move next.

At the time of reporting, Bitcoin price was $64,630.40.