Bitcoin rose to about $64,700 after a June inflation report indicated headline consumer prices fell 0.4% month‑over‑month to an annual 3.5%, the biggest one‑month decline since 2020, largely because of lower energy costs; the price movement followed a 0.2% increase in June retail sales that was driven mainly by cheaper gasoline. The inflation report showed that the entire decline was due to falling energy prices, while core inflation, which excludes food and energy, stayed at 2.6% annually; retail sales data, which are not adjusted for inflation, showed a 0.2% rise in June, with gasoline stations posting the largest decline in sales since December 2022 because fuel prices fell during the ceasefire. When gasoline and automobile sales are excluded, retail sales increased 0.4%, and the measure used in gross domestic product calculations rose 0.5%, led by gains in online shopping and car dealers; real spending, adjusted for inflation, reached its highest level since early 2022; consumer spending has grown faster than personal income, prompting households to draw on savings or use credit; inflation expectations for the next year rose to 3.7%, the highest since 2023, driven by anticipated rises in medical expenses (9.4%) and rent (8.3%); industrial production was flat in June, with manufacturing output unchanged and durable goods production declining, while capacity utilization fell to 75.7%; the Federal Reserve kept its target rate between 3.50% and 3.75% and nine of its 18 officials indicated they expect at least one further rate increase this year, with market participants assigning a 50% to 63% probability of a September hike. Oil prices have risen more than 15% since the June ceasefire ended, suggesting that July inflation figures may show renewed upward pressure, while the combination of core inflation remaining unchanged, weak manufacturing growth, and consumer spending that outpaces income raises questions about the Fed’s ability to cut rates and the outlook for risk assets such as Bitcoin.