Woofun AI reports that Bitcoin rose nearly 7% in the week ending July 5, marking its best weekly performance since March. This rally coincided with a notable decline in breakeven inflation rates, with the two-year indicator falling below 2%, aligning closely with the Federal Reserve's target. WTI crude oil prices also retreated to pre-February conflict levels, prompting reassessments of interest rate cut expectations and the US Dollar Index trajectory.

Analysts note that a weaker dollar could reduce resistance for Bitcoin’s upward movement given their negative correlation.

However, concerns persist regarding sticky services inflation, suggesting monetary policy may remain restrictive. The market now focuses on the US June CPI data release scheduled for July 14 as a key catalyst for determining future inflation trends and risk asset direction.