Cool PPI Print Sends Crypto Past $2T as July Hike Hopes Go Down the Drain 🧊

The total crypto market capitalization climbed more than 2% on Wednesday, briefly touching $2.3 trillion, after U.S. producer price index data came in below expectations and traders dialed back bets on a Federal Reserve rate hike at the July Federal Open Market Committee meeting.

The Bureau of Labor Statistics reported that producer prices fell 5.5% year-over-year in June, versus expectations of 6.2%, and declined 0.3% month-over-month, the largest monthly drop since April 2025. Core PPI rose 4.7% year-over-year, below the 5.1% consensus, and 0.2% month-over-month, compared with forecasts of 0.3%.

Bitcoin pushed above the $65,000 mark, while Ethereum traded above $1,900 for the first time since early June, also gaining more than 2% on the day, according to TradingView data.

The softer inflation print comes ahead of next week's June consumer price index release, which will provide a further read on the Fed's policy path. According to the CME FedWatch Tool, market participants have moved the probability of a July rate hike meaningfully lower following the PPI surprise, with rate-cut pricing into the second half of the year now firmer.

The shift in macro expectations has lifted risk assets broadly, with equities also trading higher on the session, and crypto-related stocks adding to the rally. Total crypto trading volume rose in tandem with prices across major venues.

With the PPI miss reinforcing disinflation trends first flagged in earlier 2025 reports, attention now turns to Wednesday's Fed minutes and the upcoming CPI release for confirmation that the central bank has room to hold rates steady.