The crypto market kicked off the week with strong momentum, as bullish sentiment carried forward from earlier price gains seen throughout the year. Bitcoin (BTC), leading the charge among high-volume cryptocurrencies, surged past $18,270 mid-week — a peak not seen since October. While many traders remained cautious ahead of key U.S. economic data, the broader market reacted positively, especially after the June Consumer Price Index (CPI) report aligned with expectations.
This inflation update has become a pivotal reference point for investors assessing the Federal Reserve’s next steps — and its implications for risk assets like Bitcoin and major altcoins such as Aptos (APT), Avalanche (AVAX), and Polygon (MATIC).
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June CPI Report: Inflation Cools in Line With Forecasts
The June CPI data drew significant attention across financial markets, serving as the first major economic release following last week’s employment report. Both core and headline inflation figures came in at 3.0% year-over-year, down from 4.0% in May — matching market forecasts and reinforcing the narrative of slowing inflation.
Notably, month-over-month price changes turned negative for the first time since 2020, dipping by -0.1%. This slight deflationary shift signals easing pressure on consumer goods and services, offering relief to policymakers and investors alike.
While the CPI report itself didn’t trigger immediate volatility in crypto markets, it set the stage for the upcoming Federal Open Market Committee (FOMC) meeting later this month. Analysts interpret the data as increasing the likelihood of a pause or even a dovish pivot in monetary policy, which historically supports growth-oriented assets like digital currencies.
Market participants are now closely watching whether this cooling trend will persist, potentially paving the way for sustained capital inflows into Bitcoin and high-potential altcoins.
Bitcoin Reclaims $18,500 Amid Macroeconomic Optimism
After briefly dipping below $18,000 post-CPI release, Bitcoin quickly regained momentum, breaking through the $18,500 resistance level. At the time of writing, BTC was trading near $18,900 — up nearly 7.95% over 24 hours — signaling renewed investor confidence.
This rally marks a critical technical development, pushing Bitcoin back toward levels last seen before the FTX collapse. The move above key moving averages suggests that long-term holders are regaining control, supported by improving macro conditions.
Market analyst Michaël van de Poppe noted on social media that while short-term corrections could test support around $17,400, the broader trend remains bullish if macro tailwinds continue. Derivatives data shows elevated long positions, indicating strong conviction among traders betting on further upside.
With increasing institutional interest and favorable inflation data, Bitcoin appears poised to challenge $19,000 in the near term — a psychological milestone that could unlock additional buying pressure.
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FAQ: Understanding CPI’s Impact on Crypto
Q: How does CPI data affect Bitcoin prices?
A: Lower-than-expected inflation often leads to speculation of looser monetary policy, which boosts investor appetite for risk assets like Bitcoin. Conversely, high CPI readings can trigger sell-offs due to fears of prolonged rate hikes.
Q: Why did Bitcoin dip briefly after the CPI release?
A: Short-term volatility is common during major economic announcements. Traders often take profits or hedge positions ahead of data, causing temporary dips before the market digests the information.
Q: Is Bitcoin now decoupled from traditional markets?
A: While Bitcoin shows growing maturity, it still correlates with broader risk-on/risk-off dynamics. However, its response to positive macro news indicates strengthening as an independent asset class.
Altcoin Momentum Builds: AVAX, MATIC, SOL and More Gain Ground
The broader altcoin market mirrored Bitcoin’s strength, with Ethereum (ETH) reclaiming $1,435 — its highest level in two months. ETH briefly pulled back after the CPI release but quickly resumed its upward trajectory, breaking above its 86-day moving average for the first time since early June.
Other major players also showed resilience:
- Avalanche (AVAX): Jumped to multi-month highs after Ava Labs announced a strategic partnership with Amazon Web Services (AWS), enhancing its infrastructure scalability.
- Polygon (MATIC): Gained 6.26% in 24 hours, outperforming several peers amid growing adoption in gaming and Layer-2 solutions.
- Solana (SOL): Rose 4.74%, supported by strong ecosystem activity and renewed interest in meme tokens like BONK.
These gains reflect improving investor sentiment across multiple blockchain platforms, particularly those demonstrating real-world utility and developer momentum.
Top Gainers: Aptos (APT) Leads the Charge
Among standout performers, Aptos (APT) surged 25.70% in 24 hours — outpacing even Lido DAO (LDO), which gained 20.15%. This rally underscores growing confidence in newer Layer-1 blockchains that offer scalability and low transaction costs.
Additional double-digit gainers included:
- Bitcoin Cash (BCH)
- Flow (FLOW)
- Optimism (OP)
- Gala (GALA)
According to CoinMarketCap, total crypto market capitalization rose 6.75% to $908 billion within 24 hours. Meanwhile, the Fear & Greed Index climbed to 30 — still in “fear” territory but showing clear improvement from recent lows.
Liquidation Activity Signals Strong Market Movement
Per Coinglass data, over $390 million in positions were liquidated in the past 24 hours, with shorts accounting for 93.84% of total liquidations. This indicates that bearish bets were overwhelmingly wiped out during the rally.
Breakdown of futures liquidations:
- Ethereum-based contracts: $170 million
- Bitcoin futures: $143 million
Such large-scale short squeezes often precede extended bullish runs, as forced buybacks amplify upward momentum.
FAQ: What Drives Altcoin Season?
Q: Why are altcoins rising alongside Bitcoin?
A: When macro conditions improve and BTC stabilizes above key levels, capital begins rotating into higher-beta assets like altcoins. Projects with strong fundamentals or recent catalysts tend to outperform.
Q: Can partnerships really impact token prices?
A: Yes — strategic collaborations, especially with major tech firms like AWS, signal credibility and potential for enterprise adoption, driving investor interest and price appreciation.
Q: What should traders watch next?
A: The July FOMC meeting is critical. Any hint of a rate pause or dovish tone could accelerate the current rally across both BTC and high-growth altcoins.
Looking Ahead: Fed Decision Looms Large
All eyes are now on the July 26 FOMC meeting, where markets expect a pause in rate hikes after ten consecutive increases. The June CPI print strengthens the case for a hold at 5.25%, giving policymakers room to assess cumulative tightening effects.
If the Fed adopts a more accommodative stance, it could catalyze another leg up for crypto markets — particularly for innovation-driven projects like Aptos, Avalanche, and Solana.
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Final Thoughts
The confluence of cooling inflation, resilient technicals, and growing blockchain innovation has created a fertile environment for digital assets. Bitcoin’s approach to $19,000, coupled with explosive moves in altcoins like APT and AVAX, highlights a maturing ecosystem increasingly responsive to macro fundamentals.
As we enter the second half of 2025, investors should focus on projects with strong use cases, active development, and positive catalysts — while staying alert to evolving monetary policy signals.
Core Keywords:
Bitcoin (BTC), Aptos (APT), CPI data, cryptocurrency market, Ethereum (ETH), Avalanche (AVAX), inflation impact, Fed meeting