Daily Crypto Roundup: Cooling CPI Lifts Bitcoin, Prediction Markets Explode & BIP-110 Sparks Bitcoin Battle

**SPEAKER_1** (0:00)
Welcome back to the Daily Crypto Roundup. And today, we have finally got some genuinely positive news for the crypto market, because the latest inflation numbers out of the United States after Federal Reserve interest rate hike have taken a serious hit. But that is only the beginning. We are also looking at an absolutely enormous breakout for prediction markets during the World Cup, with more than $50 billion in monthly volume and platforms like Kalshi and Polymarket beginning to challenge the traditional sportsbook industry. We have a major fight breaking out over the future of Bitcoin itself. After BIP110 raised one of the biggest questions in crypto, who actually gets to decide what Bitcoin can and cannot be used for?
JPMorgan is warning that the rise of hyperliquid could create serious economic problems for Circle and Coinbase, with around $6 billion in USDC now sitting on the platform. And finally, Donald Trump is putting fresh pressure on the United States Senate to pass the Clarity Act, as America gets closer to what could be one of the most significant pieces of crypto legislation in its history. So there is plenty to get through today, and for once, we are starting with some genuinely good news for the market. Before we do, a quick reminder that anyone who signs up to Kraken using our link gets 20 XRP as part of our listener giveaways. Make sure you use the official Crypto News Today Kraken link, complete the required steps, and keep listening for future giveaway announcements. Now let us get straight into the market, because prices have moved sharply higher following this morning's inflation data.
At the time of recording, Bitcoin is trading around $64,000 and is up roughly 2% over the past 24 hours.
Ethereum is around $1,870 and has been one of the strongest major cryptocurrencies today, gaining approximately 5%.
XRP is trading close to $1.10, BNB is around $580, and Solana is sitting close to $77.
And the catalyst behind today's move is extremely important. The latest United States Consumer Price Index report showed that headline inflation actually fell by 0.4% during June. Economists had expected a decline of only 0.1%, meaning inflation cooled far more aggressively than the market had predicted. On an annual basis, inflation came in at 3.5%, below the expected 3.8%, and significantly lower than the 4.2% recorded in May.
Core inflation, which removes volatile food and energy prices, was completely flat during the month. Economists had expected it to rise by 0.2%.
That matters enormously because before this report, investors had suddenly started becoming concerned that the Federal Reserve might actually raise interest rates again.
Just one month ago, the probability of a July rate hike was around 8%.
By yesterday, those odds had reportedly surged as high as 42%.
That is an extraordinary change in expectations in a very short period of time. But today's inflation report has dramatically weakened the case for an immediate hike. Bitcoin responded by moving higher. American stock futures rose, and treasury yields fell. And this is exactly why we constantly talk about interest rates on this podcast.
Crypto does not operate inside its own isolated bubble anymore. Bitcoin is increasingly connected to global liquidity, institutional capital, bond yields, and expectations for monetary policy. Higher interest rates generally make safer assets such as government bonds more attractive, increase borrowing costs, and remove liquidity from risk assets. Lower rates, or even simply the expectation that rates will not rise further, can have the opposite effect. So no, one CPI report does not guarantee that Bitcoin is about to explode higher. We still have geopolitical risks, uncertain economic conditions, and plenty of volatility ahead. But compared with where the market was yesterday, this was undoubtedly a positive result. And now we move from traditional economic data into one of the fastest growing sectors connected to crypto. Prediction markets. Because during the 2026 World Cup, these platforms have absolutely exploded. Kalshi, Polymarket, and Robinhood's new Rothera platform collectively helped prediction market activity surpass $50 billion in monthly volume. Kalshi alone recorded approximately $31 billion in notional trading volume during June, an increase of more than 70% from May, with sports contracts accounting for around 85% of activity. The company says World Cup-specific volume has now reached more than $22 billion.
Polymarket's international platform recorded a monthly record of $10.8 billion, while its regulated American platform separately generated another $3.5 billion.
And Rothera, a joint venture involving Robinhood and Susquehanna International Group, processed $2 billion during its very first month. Now we need to be careful when comparing these numbers directly with traditional sports books, because prediction market notional trading volume is not calculated in exactly the same way as conventional betting handle. But even with that distinction, the direction of travel is impossible to ignore. People are increasingly comfortable trading on whether something will or will not happen.