According to Consumer Price Index (CPI) data published in mid-July, inflation in June fell 0.4% for the month and was 3.5% annualized, the largest monthly decline since April 2020. For Bitcoin (BTC 0.90%) holders down 49% from October 2025’s all-time high, that readout was a breath of fresh air.

One print isn’t going to kick off a new crypto bull market on its own. But it’s still a step forward in fulfilling some of the preconditions for one, so let’s take a closer look at how this might affect the market.

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The mechanics of a market turn

Every recent crypto bull market has happened when central banks, especially the Federal Reserve, were adding liquidity to the financial system or credibly promising to do so…