Optimism swept back into the crypto market on Tuesday after fresh US inflation figures for June came in softer than traders had bet on. The Consumer Price Index (CPI) report was enough to lift buyer confidence quickly, sending Bitcoin above the $64,000 mark while leading altcoins posted even bigger gains.
The mood shifted the moment it became clear that price pressures were easing not just month on month, but also relative to analyst forecasts. That combination revived hopes that a cooler inflation backdrop could set up more favourable conditions for digital assets in the weeks ahead.
Inflation falls for the first time in five months
According to the US Bureau of Labor Statistics, annual inflation slowed to 3.5% in June 2026, down from 4.2% in May. It was the first decline in five months and landed below the consensus forecast of 3.8%, which is precisely why the number moved sentiment so fast.
The softness was not limited to the headline figure. Core CPI, which strips out food and energy prices, also eased to 2.6%, coming in under the 2.8% the market had expected. When both the headline and core readings undershoot forecasts, it is usually read as firm evidence that inflation is genuinely cooling.
Oil prices and the ceasefire effect
The biggest force behind the drop was cheaper energy. A temporary ceasefire between the US and Iran eased the pressure that had been building on global oil markets, pulling energy prices lower. Because energy feeds directly into the overall inflation basket, that decline did much of the heavy lifting in dragging the headline number down.
Bitcoin and altcoins surge
Following the release, Bitcoin (BTC) climbed above $64,000, adding 2.4% over the past 24 hours. The major altcoins moved even faster. Ethereum (ETH) rose 5.6%, XRP gained 2.9% and Solana (SOL) advanced 2.0%.
The rally reached well beyond the largest coins. Other categories, including meme coins and privacy tokens, also booked gains of 3 to 4%. Taken together, the advance reflected renewed confidence that easing inflation could support a more supportive environment for the crypto market.
A wave of liquidations follows the rally
The sharp move higher triggered a heavy round of liquidations across the derivatives market. According to Coinglass data, more than 85,000 traders were liquidated over the past 24 hours, with total liquidations reaching $376 million.
Ethereum took the biggest hit, with liquidations totalling $127 million. Of that, $112 million came from short traders who had bet on prices falling. As the market rallied instead, those positions were wiped out.
Bitcoin recorded $113 million in liquidations, $105 million of which came from shorts. Solana saw $13 million in liquidations, with long positions accounting for $8 million and short positions $5.5 million. The numbers make clear that a large slice of the market had not been positioned for a rally.
Why it matters from here
Cooling inflation matters to investors because it tends to encourage money back into riskier assets. The strength in Bitcoin and the leading altcoins is being viewed through exactly that lens. The next moves will still depend on incoming data and global conditions, but for now a weaker inflation print has handed crypto investors both relief and a fresh dose of confidence.
