Cryptocurrency market gains over $120 billion in July amid US Fed rate expectations

The global cryptocurrency market expanded by more than $120 billion in July 2026, rebounding after facing persistent selling pressure throughout the first half of the year.

The resurgence in investor appetite was primarily driven by signs of cooling inflation in the United States. Lower inflation figures reinforced market expectations that the Federal Reserve would refrain from further interest rate increases, potentially shifting toward monetary easing. Anticipation of improved global liquidity conditions prompted investors to reallocate capital into higher-risk assets, significantly boosting demand across digital currencies.

While broader macroeconomic uncertainties previously weighed heavily on digital asset valuations in early 2026, the strong start to the second half highlights renewed momentum across the sector. Analysts suggest that the market trajectory will remain closely tied to upcoming US economic data releases and central bank policy decisions.

Sources: Anadolu Agency