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 BTC +4.44% 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.