Bitcoin gains alongside stocks as US inflation edges closer towards Fed’s 2% target

The cryptocurrency market posted an uptick today, with major tokens in the green, a trajectory that mirrored positive moves in U.S. equity markets. 

The rally comes amid a cooler inflation reading from one of the U.S. Federal Reserve's key data gauges. According to the U.S. Bureau of Economic Analysis, the personal consumption expenditures (PCE) price index increased 0.1% in June and was up 2.5% from a year ago. The annual rate showed a slight decline from May's 2.6%, confirming that inflation continues to close in on the Federal Reserve’s 2% annual target.

The largest digital asset by market cap's price increased 4.7% in the past 24 hours and was changing hands for $67,689 at 11:28 a.m. ET, according to The Block’s Price Page.

In early trading on Friday, the Dow Jones Industrial Average increased by 610 points, or 1.5%, driven by a strong performance from the manufacturing company 3M. The company's stock surged nearly 16%, on track for its best day since at least 1972. The S&P 500 rose by 0.8%, and the Nasdaq Composite was up 0.5%.

Trump to speak at Bitcoin 2024

The bitcoin rally comes ahead of Donald Trump's speech at this year's Bitcoin Conference in Nashville, Tennessee. The former U.S. president and Republican nominee is scheduled to appear on the Nakamoto Stage at 2 p.m. CT on July 27 for a 30-minute session, according to the conference's website.

Additionally, according to Glassnode analysts, bitcoin's recent rebound above the $67,000 mark has allowed the digital asset to surpass the short-term holder cost basis. This refers to the average price at which short-term investors acquired their bitcoin holdings. When the current bitcoin price rises above this cost basis, it indicates that, on average, short-term holders are in a profitable position.

"The move upward has provided much-needed relief for new investors, with over 75% of their supply moving back into profit," Glassnode analysts added.