[Analysis: Bitcoin bullish sentiment supported by easing inflation expectations, market focuses on July CPI data] Odaily Planet Daily News – The crypto market continues its stabilization trend, with Bitcoin rising nearly 7% in the week ending July 5, marking its strongest weekly performance since March. This round of gains has been primarily driven by the easing of inflation expectations. The breakeven inflation rate, which measures market inflation expectations, has recently declined significantly, with the two-year indicator falling below 2%, approaching the Federal Reserve's inflation target level. Long-term inflation expectations have also weakened. At the same time, WTI crude oil prices have dropped in tandem with inflation expectations, falling to levels similar to those before the geopolitical conflict in February. This has led the market to reassess inflation pressures, rate cut expectations, and the trajectory of the U.S. dollar. Some analysts believe that if the U.S. Dollar Index (DXY) weakens, it will further reduce resistance to Bitcoin's upward movement, as the two are typically negatively correlated. However, other viewpoints caution that inflation in the service sector remains sticky, and the decline in oil prices may not necessarily signal a reversal in the overall inflation trend. Monetary policy may continue to adhere to a "higher for longer" stance. The next key market focus will be the U.S. June CPI data, set to be released on July 14, which could serve as a critical catalyst for assessing the inflation trajectory and the direction of risk assets. (CoinDesk)