Bitcoin pushed to a fresh three-week high on Wednesday, riding a wave of relief after US inflation data cooled for a second straight session. The move brought BTC/USD to $65,500—its highest level since June 22—while risk assets strengthened as traders recalibrated expectations for Federal Reserve policy.

The rally, however, has not erased caution among market participants. Traders highlighted nearby liquidity hurdles and pointed to historical price behavior around key moving-average levels, suggesting Bitcoin could face renewed selling pressure if it fails to hold above critical zones.

Key takeaways

• BTC/USD traded up to around $65,500, the highest since June 22, after US Producer Price Index (PPI) data came in cooler than expected.
• The improving inflation picture supported a more favorable tone for risk assets and reduced certainty around near-term Fed rate hikes, according to CME Group’s FedWatch Tool.
• Despite the breakout attempt, traders emphasized tight order-book liquidity levels around $65.6K and $67.2K that could determine whether the move extends.
• Analysts noted Bitcoin is nearing a 50-month exponential moving average (EMA), a technical area that has previously corresponded with rejection during bear-market-style setups.

Bitcoin’s move tracks a cooler inflation print

Price action accelerated after the latest US Producer Price Index reading for June. Per data from the Bureau of Labor Statistics (BLS), the year-on-year PPI rate for final demand was 5.5%, following a 0.3% monthly decrease.

In the BLS release, the agency explained that the June movement in the index for final demand reflected price changes across goods and services: “the index for final demand goods… fell 1.4 percent,” while “the index for final demand services moved up 0.2 percent.” The PPI report is available via the BLS official news release.

The PPI data followed Tuesday’s Consumer Price Index (CPI) surprise to the downside, which had already lifted Bitcoin. As earlier coverage noted, CPI came in weaker than expected despite macro pressures, including the US-Iran conflict and its knock-on effects on oil prices.

Market participants interpreted the combination of PPI and CPI softness as further evidence that inflation pressures are easing, which in turn can influence expectations for how quickly—and how aggressively—the Fed will tighten or hike rates. Economist Mohamed El-Erian described the PPI results as “much better-than-expected” and suggested the numbers could boost equities and temper expectations for further interest-rate hikes, in a post on X: elerianm’s update.

Fed expectations shift as traders reprice rate odds

Beyond Bitcoin-specific dynamics, Wednesday’s strength aligns with a broader shift in interest-rate expectations. CME Group’s FedWatch Tool indicated changes to probability assumptions for the September FOMC decision, showing that a 0.25% hike was no longer the single most likely scenario.

That repricing matters for crypto because Bitcoin frequently trades like a high-beta macro asset during periods when funding conditions are expected to loosen or tightening risks appear to fade. When traders perceive a lower likelihood of additional hikes, appetite for risk tends to improve—often translating into more aggressive bids in liquid assets like BTC.

Additional commentary pointed to falling inflation expectations. The Kobeissi Letter referenced bets tracked via Polymarket’s prediction activity, arguing that inflation expectations continued to decline, based on the service’s users’ outlook.

Order-book levels and moving-average resistance in focus

Even with the upside momentum, traders appeared reluctant to declare the rally fully confirmed. Much of the near-term debate centered on whether Bitcoin can clear immediate liquidity pockets and hold them long enough to trigger sustained buying.

Trader Daan Crypto Trades emphasized that liquidity above the current area sits around the $65.6K region and, more importantly, at $67.2K, describing those levels in an X post: Daan Crypto Trades. In the same update, the trader argued that breaking above the $67.2K liquidity zone could convert the move into “a bigger move,” potentially reopening the path toward the $70K-plus area—positioning Bitcoin inside the middle of its commonly referenced $60K–$80K range.

On the technical side, Rekt Capital highlighted that BTC was approaching its 50-month exponential moving average (EMA). In past market cycles, such moving averages can act as inflection points; the argument, tied to “bear-market history,” is that if price behaves similarly, it may face rejection at or near the EMA rather than continuing cleanly higher.

That caution was echoed by trader Killa, who referenced a statistical pattern from the prior 12 months and suggested BTC could “derisk for the remainder of the month” and potentially push back down if the historical behavior repeats.

What to watch next for confirmation or reversal

For traders, the immediate question is whether Bitcoin can build acceptance above the liquidity zones highlighted by market participants—particularly around $67.2K—and whether it can avoid rejection as it tests the 50-month EMA area noted by analysts. With rate expectations still sensitive to incoming data and Fed messaging, the next inflation or central-bank headline could quickly shift the balance again.

Bitcoin’s BTC$64,532.45 rally on Tuesday petered out as investors considered a weaker-than-forecast U.S. inflation figure wasn’t enough to prompt a Federal Reserve interest-rate cut.

While it’s still 3% higher over 24 hours, the largest cryptocurrency has dropped 0.5% since midnight. Ether (ETH), up 4.7% in 24 hours, has also pulled back by 0.5%.

On Polymarket, the perceived odds of a rate increase plunged from 34% to 6.7% after the data came out. Bettors now weigh a 93% chance the Federal Reserve will leave rates unchanged this month, and the CME’s FedWatch shows 30-day fed funds futures prices indicating just a 14.4% chance of an increase.

“Crypto’s reaction to the latest CPI report shows the market is becoming more selective in how it interprets macro signals,” Markus Levin, co-founder of XYO, told CoinDesk. “While falling inflation reduces pressure on markets and improves the outlook for risk assets, traders are no longer assuming that every favourable inflation print will automatically lead to rate cuts or new all-time highs.”

South Korea plans to update its 76-year-old national asset management system to formally include virtual currencies and intellectual property in the country’s definition of national assets, according to the Ministry of Economy and Finance’s economic policy roadmap released Wednesday.

The proposal contemplates revising the National Property Act, which dates back to 1950, and includes plans to create a broader legal framework for managing state-owned assets. The ministry reiterated plans to start a pilot program for tokenized government bonds in 2027, saying blockchain technology has the potential to reduce transaction costs and speed up transfers.

Officials are also studying the tokenization of state-owned real estate to allow retail investors to participate and share in investment returns, according to the plan.

The announcement builds on South Korea’s broader push to bring blockchain into public finance. Earlier this year, the Finance Ministry said it would begin testing tokenized deposits for government spending in the fourth quarter. The Bank of Korea has already started trials of its central bank digital currency (CBDC) with commercial banks.

An attacker drained approximately $18 million in USDC from Ostium’s liquidity vault on Arbitrum in an oracle manipulation exploit detected by blockchain security firm Blockaid, onchain data shows.

According to Blockaid’s alert, the attacker leveraged a registered PriceUpKeep forwarder, a component of Ostium’s automated infrastructure, to submit oracle price reports with future-dated timestamps. The manipulated reports created the appearance of profitable trades, which triggered an $18 million USDC payout from the vault.

Ostium is a decentralized perpetuals exchange on Arbitrum that allows users to trade real-world assets including commodities, forex, and equity indices, with up to 200x leverage, settling in USDC.

Ostium uses a custom price-feed system to track real-world asset prices, with a third-party automation network called Gelato responsible for pushing those prices onchain at the right moments. A smart contract called PriceUpKeep sits at the center of that process, acting as the trigger that writes the latest price data to the blockchain whenever a trade needs to be executed.

Binance has unveiled an $800,000 XRP airdrop campaign for eligible Ripple USD holders, introducing weekly rewards designed to encourage activity around Ripple’s dollar-backed stablecoin.

According to a July 15 announcement from Binance, users holding RLUSD in Binance Earn, Margin, or Futures accounts between July 17 and Aug. 14 will qualify for XRP rewards through weekly distributions scheduled every Friday until the campaign concludes.

The exchange said the promotion is available only to users who meet its eligibility requirements and is excluded in certain jurisdictions.

Eligibility rules focus on active RLUSD users

To qualify, Binance said participants must maintain at least 0.01 RLUSD in eligible accounts. In addition, users are required to record an average daily Margin or Futures trading volume of $500 or more across any trading pairs during the promotion period.

Binance also introduced separate treatment for borrowed assets. According to the exchange, RLUSD obtained by borrowing other stablecoins will receive a 60% haircut after liabilities are calculated. The adjustment applies to borrowing involving USDT, USDC, U, USD1, and FDUSD within Margin accounts.

Broker accounts are also eligible to receive XRP rewards, Binance said, adding that there is no individual cap on airdrop payouts for those accounts. Even so, the exchange noted that participation remains restricted in selected countries because of local regulatory requirements.

The campaign arrives as RLUSD has lost some of the momentum it built earlier this year. The Ripple-issued stablecoin carried a market capitalization of about $1.51 billion at the time of writing after declining more than 10% over recent weeks, while its 24-hour trading volume slipped by roughly 6%.

Earlier in June, RLUSD’s market capitalization climbed above $1.81 billion following the rollout of 24/7 settlement on the XRP Ledger with Mastercard, before later retreating amid delays surrounding U.S. crypto legislation and lower market expectations for passage of the CLARITY Act.

Ripple expands RLUSD use cases beyond stablecoin payments

The Binance rewards program comes shortly after Ripple continued expanding RLUSD’s role beyond conventional payments. As previously reported by crypto.news, Ripple joined the x402 Foundation as a Premier Member to support payments made with XRP and RLUSD through an open standard built for AI agents.

Ripple said AI systems are increasingly handling more of the payment process, creating demand for infrastructure capable of transferring value as efficiently as information moves across the internet. The company added that developers can use the XRP Ledger and the x402 protocol to build AI-powered applications that settle transactions with XRP and RLUSD.

The Foundation’s Premier Members include Coinbase, Circle, Google, Mastercard, Visa, Amazon Web Services, Stripe, Shopify, American Express, Adyen, Cloudflare, Fiserv, the Solana Foundation, the Stellar Development Foundation, the Monad Foundation, and MoonPay.

Meanwhile, XRP (XRP) continued to strengthen alongside improving macro sentiment. The token rose about 5% after U.S. consumer inflation data came in below expectations, trading between $1.07 and $1.12 over the past 24 hours. Trading volume climbed roughly 40%, indicating stronger market participation.

CoinGlass data also pointed to rising derivatives activity. The analytics platform reported that XRP futures open interest increased 3% over the previous four hours to $2.44 billion, suggesting traders added fresh positions as lower U.S. inflation data and Binance’s incentive program supported bullish sentiment.

In Utah, which passed State-Endorsed Digital Identity (SEDI) legislation, Cardano Foundation-built Veridian has already shown that digital identity can be delivered in a privacy-preserving way, allowing users to prove that they are over or under a specific age without exposing any other data. It’s a working model of what responsible verification can look like and shows trust does not require unnecessary disclosure. Privacy can be designed into the system from the start.

That is the standard bills like KIDS or KOSA should favor.

If the goal is to protect children, the tools should be narrow, purposeful, and minimally invasive. Broad mandates that push every platform toward more data, more retention, and greater dependence on identity are too blunt and risk creating a multitude of other problems alongside the ones they claim to solve.

A better approach is straightforward. Build for data minimization, limit retention, and use privacy-preserving verification where verification is truly needed. If digital trust can be established without exposing personal data, lawmakers should prefer that path. If safety can be improved without turning the internet into an identity checkpoint, that should be the only option.

Children deserve protection online. But they do not need a policy framework that makes everyone more visible in order to make the internet, and the companies that thrive on it, more accountable.

EU AML watchdog has warned that the end of MiCA’s transitional period has increased the risk of compliance pressure on crypto firms as customers move to licensed providers across the bloc.

According to Bruna Szego, chair of the Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA), crypto companies exiting the European Union market could face a surge in customer withdrawal requests, while licensed virtual asset service providers (VASPs) may struggle to onboard large numbers of new users without weakening compliance standards.

Speaking during a Wednesday briefing before the European Parliament’s Committee on Economic and Monetary Affairs, Szego said firms winding down operations should be prepared for increased customer activity as users transfer their assets before services end. She added that licensed providers absorbing those customers should keep anti-money laundering procedures effective throughout the transition.

The warning comes after the European Union’s 18-month Markets in Crypto-Assets (MiCA) transitional period ended on July 1, requiring crypto-asset service providers (CASPs) to obtain authorization to continue serving customers in the bloc.

Earlier, the European Securities and Markets Authority (ESMA) instructed firms that remained unauthorized after the deadline to take immediate steps to wind down their EU operations, leaving customers to migrate to licensed providers.

AMLA prepares next stage of MiCA oversight

Before the July 1 deadline, AMLA issued an advisory note outlining money laundering risks linked to the end of the transitional period. According to the authority, the guidance sets out expectations for both firms closing their EU businesses and licensed providers accepting new customers so that anti-money laundering controls remain effective during the migration.

During the parliamentary briefing, Szego said AMLA plans to publish a report before the end of the year examining money laundering risks across the crypto sector alongside supervisory practices used by national authorities. She added that the authority is expanding its blockchain analytics capabilities to strengthen oversight of crypto-asset service providers.

According to Szego, the report will compare how regulators supervise CASPs across member states and identify differences that could require coordinated follow-up work between AMLA and national authorities.

The latest comments build on Europe’s post-licensing supervisory efforts. On July 11, ESMA launched a Common Supervisory Action covering a sample of MiCA-authorized crypto custodians to examine operational resilience in areas including private key management, transaction controls, incident response and reliance on third-party technology providers.

ESMA said the review is intended to test whether authorized firms can maintain effective operational safeguards in practice rather than relying solely on their MiCA licenses, making it one of the first coordinated supervisory exercises after the transition period expired.