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Bitcoin Slips Back to $64K as Ethereum Pulls Back From Six-Week High

The cryptocurrency market gave back part of its recent gains after a strong rally driven by softer-than-expected U.S. inflation data. Bitcoin and Ethereum both reached multi-week highs before facing profit-taking, leading to a broad market pullback.

Bitcoin briefly climbed above $65,500, marking its highest level in nearly three weeks. However, the rally lost momentum, and the leading cryptocurrency has since retreated to around the $64,000 level as traders locked in profits following the sharp move higher.

Ethereum also enjoyed a strong rally, surging to nearly $1,950—its highest price in six weeks. Despite the impressive breakout, ETH was unable to maintain its momentum and has since slipped back below $1,900.

Earlier this week, market sentiment improved after the latest U.S. Consumer Price Index (CPI) report showed inflation cooling more than expected. The data fueled optimism that the Federal Reserve may avoid raising interest rates in the near term, encouraging investors to return to risk assets such as cryptocurrencies.

Before the CPI-driven rally, Bitcoin had experienced a volatile start to the week. Renewed geopolitical tensions in the Middle East and concerns surrounding recent Bitcoin sales by Strategy weighed on investor sentiment, briefly pushing BTC below $62,000.

The lower inflation reading quickly changed the market narrative, helping Bitcoin recover above both the $64,000 and $65,000 levels before the current correction began.

Across the broader market, most major cryptocurrencies traded lower alongside Bitcoin and Ethereum. BNB remained relatively stable near $580, while XRP struggled to hold above the $1.10 level after posting a modest daily decline.

Other major altcoins, including Solana (SOL), TRON (TRX), Litecoin (LTC), Cardano (ADA), Zcash (ZEC), and Hyperliquid (HYPE), also recorded losses during the session. Bitcoin Cash (BCH) and DEXE were among the weakest performers, posting the largest declines among major-cap cryptocurrencies.

One notable exception was ONDO, which surged approximately 17%, making it one of the strongest-performing assets despite the broader market weakness.

As prices retreated, the total cryptocurrency market capitalization declined by roughly $40 billion from its recent peak, bringing the overall market value to approximately $2.27 trillion.

Although today's pullback reflects short-term profit-taking rather than a major trend reversal, investors remain focused on upcoming economic data, Federal Reserve policy expectations, and geopolitical developments, all of which could influence the crypto market's next direction.

Disclaimer: This article is for informational and educational purposes only and should not be considered financial or investment advice. Cryptocurrency investments are highly volatile and involve substantial risk. Always conduct your own research (DYOR) and consult a qualified financial advisor before making any investment decisions.