Bitcoin price climbed above $65,000 on Monday as the broader cryptocurrency market extended its weekly gains ahead of a closely watched U.S. inflation report.
Bitcoin was up nearly 3% over the past seven days, while Ethereum and several other major cryptocurrencies also posted gains. Investors are now turning their attention to the latest U.S. consumer price data, which could influence expectations for the Federal Reserve's interest-rate policy.
The July Consumer Price Index (CPI) is scheduled to be released by the U.S. Bureau of Labor Statistics on Wednesday, August 12, at 8:30 a.m. ET.
Bitcoin Climbs Above $65,000
Bitcoin traded above $65,000, extending its recovery as investors continued to assess the outlook for U.S. monetary policy.
The latest move followed a weaker-than-expected U.S. jobs report, which reduced some concerns that the Federal Reserve could need to maintain or increase restrictive interest rates.
Lower expectations for aggressive monetary tightening can benefit risk-sensitive assets such as cryptocurrencies because investors may become more willing to allocate capital toward higher-risk investments.
Bitcoin's latest advance has also come alongside strength in global equity markets.
Ethereum, Solana and BNB Also Gain
Bitcoin was not the only major cryptocurrency trading higher.
Ethereum (ETH) was near $1,919 and had gained almost 3% over the week.
BNB traded around $603, with its weekly performance also close to 3%.
Solana (SOL) was among the strongest major cryptocurrencies, rising about 1% during the day and nearly 5% over seven days.
Tron remained around $0.33.
The broad gains suggest that the latest cryptocurrency rebound is extending beyond Bitcoin and Ethereum into other large-cap digital assets.
XRP Lags the Broader Crypto Market
XRP was the notable exception among major cryptocurrencies.
XRP slipped around 0.4% to approximately $1.03 and remained down about 4% over the previous seven days.
Other tokens also showed mixed performance. Hyperliquid's HYPE declined more than 1% to around $54 but remained higher on the week, while Dogecoin traded below $0.07.
The uneven performance highlights the continued divergence between individual crypto assets even as the broader market moves higher.
Global Stocks Support Bitcoin's Rally
The latest Bitcoin move has occurred alongside strength in global equities.
The MSCI All Country World Index gained 0.1%, marking its seventh advance in eight trading sessions. Asian stocks also moved higher, with the regional index gaining about 0.6%.
U.S. equities had recently reached record levels following the weaker jobs report, reinforcing the broader risk-on environment.
Semiconductor stocks were particularly strong, with a regional chipmaker index rising more than 1.5% as companies including Taiwan Semiconductor Manufacturing and SK Hynix gained.
The strength in equities provides a supportive backdrop for cryptocurrencies, which have increasingly traded alongside broader risk assets during periods of changing liquidity and interest-rate expectations.
Oil Prices Move Higher
Not every part of the global market followed the same direction.
Brent crude oil rose about 1% to around $84.40 per barrel, extending a gain of more than 5% over three trading sessions.
The increase came as geopolitical tensions remained elevated and expectations for an agreement involving the reopening of the Strait of Hormuz remained uncertain.
Meanwhile, U.S. Treasury yields moved higher after the previous week's decline. The 10-year Treasury yield rose about one basis point to 4.66%, while the U.S. dollar strengthened against several major currencies.
These movements remain important for Bitcoin because changes in bond yields, the dollar and global liquidity can influence investor appetite for risk assets.
Bitcoin Rally Faces Several Internal Headwinds
Bitcoin's latest gains have come despite several recent problems within its own ecosystem.
Over the past several days, the Bitcoin market has faced multiple security and technical developments, including another reported wave of losses involving Coldcard-generated wallets and a critical BTCPay Server vulnerability that affected some merchant Lightning nodes.
Bitcoin's development community has also been dealing with controversy surrounding BIP-110, after the proposed fork reportedly produced two blocks before activity stalled.
These developments have created additional uncertainty around parts of the Bitcoin ecosystem even as the asset's market price continues to recover.
For related coverage, readers can also follow our latest Bitcoin news and market analysis.
US Inflation Data Is the Next Major Test
The biggest near-term catalyst for Bitcoin could now be the upcoming U.S. inflation report.
The data will provide investors with another indication of whether price pressures are cooling or remaining elevated.
The relationship between inflation and Federal Reserve policy is particularly important for cryptocurrency markets.
If inflation comes in softer than expected, investors could increase bets on a more accommodative monetary-policy outlook. That could support Bitcoin and other risk assets.
A stronger-than-expected inflation reading, however, could have the opposite effect by reinforcing expectations for higher interest rates or tighter monetary conditions.
Why Inflation Matters for Bitcoin
Bitcoin has become increasingly sensitive to changes in global liquidity and expectations for U.S. interest rates.
When investors expect rates to decline, yields on traditional assets can become less attractive relative to riskier investments. This can encourage capital to move toward equities, cryptocurrencies and other growth-oriented assets.
On the other hand, persistent inflation can force central banks to maintain tighter monetary conditions, potentially putting pressure on speculative assets.
This makes Wednesday's inflation release particularly important for determining whether Bitcoin's latest move above $65,000 can continue.
Bitcoin Market Outlook
For now, Bitcoin remains supported by a combination of improving risk sentiment, strength in global equities and reduced concerns surrounding the U.S. labor market.
However, the cryptocurrency's next major move could depend heavily on the inflation data.
A favorable inflation reading could strengthen expectations for easier monetary policy and provide additional support for Bitcoin. A hotter-than-expected report could revive concerns over interest rates and create renewed pressure across crypto markets.
Conclusion
Bitcoin has climbed above $65,000, extending its weekly gains as investors respond to a weaker U.S. jobs report and improving sentiment across global markets.
Ethereum, Solana and BNB have also posted gains, although XRP has continued to underperform the broader crypto market.
The next major test is the U.S. inflation report due Wednesday. The data could influence expectations for Federal Reserve policy and determine whether Bitcoin can maintain its latest recovery.
For crypto investors, the combination of inflation, interest rates, Treasury yields and global equity performance will remain key factors to watch as Bitcoin attempts to build on its move above $65,000.
