Cooling U.S. inflation gave crypto markets a boost on July 14, after consumer prices fell more than economists expected, easing immediate pressure on the Federal Reserve to tighten monetary p
Cooling U.S. inflation gave crypto markets a boost on July 14, after consumer prices fell more than economists expected, easing immediate pressure on the Federal Reserve to tighten monetary policy further.
The U.S. Consumer Price Index fell 0.4% in June, the largest monthly decline since April 2020, bringing annual inflation down to 3.5% from 4.2% in May. Economists surveyed by Dow Jones had expected a 0.2% monthly decline and a 3.8% annual inflation rate.
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Core inflation, which excludes food and energy, was unchanged during the month, while lower energy and housing costs drove much of the decline, according to data released by the Bureau of Labor Statistics on July 14.
Federal Reserve Chair Kevin Warsh reiterated that policymakers remain focused on inflation despite the softer report.
"We have no tolerance for persistently elevated inflation," Warsh said in prepared testimony before the House Financial Services Committee. "We share a resolute commitment to restoring price stability."
The report also shifted expectations in prediction markets.
Source: PolymarketAt the time of writing, Polymarket traders assigned a 94% probability that the Federal Reserve would leave interest rates unchanged at its July 28-29 meeting. The market had attracted more than $59 million in trading volume.
Trending on TheStreet RoundtableCrypto markets rallied immediately after the inflation data, triggering a wave of liquidations across leveraged bearish positions.
More than $112 million worth of crypto positions were liquidated during the first hour after the release, according to data by CoinGlass.
Roughly $105.8 million came from short positions betting on lower crypto prices, compared with just $6.7 million in long liquidations.
JUST IN: Bitcoin jumps 2.5% to $63,800, triggering over $112 million in crypto liquidations in the past hour, with $106 million wiped from short positions. bitcoin:native #Bitcoin#Crypto#Liquidation#Marketspic.twitter.com/P3ERkFxP9A
— Roundtable Network (@RTB_io) July 14, 2026
Bitcoin climbed about 2.5% to $63,800, while Ethereum rose around 2.3% to about $1,780.
XRP also gained roughly 3% to trade near $1.10 at the time of writing.
Ahead of the inflation report, U.S. spot Bitcoin exchange-traded funds recorded about $424.7 million in net outflows on July 13 as per Farside data, signaling a cautious stance among institutional investors.
The softer-than-expected CPI print, however, helped improve risk sentiment, with Bitcoin and Ethereum moving higher after the data was released. The inflation report also lifted traditional safe-haven assets.
Spot gold rose about 1.9% to roughly $4,077 per ounce, while silver gained about 2.6% to around $59.16 per ounce.
Related: U.S. government moves $8.8M of Bitcoin that Trump said would never sell
