Bitcoin traded just below $64,000 on Thursday as investors digested the latest U.S. inflation report. The data matched expectations and reduced concerns about an immediate Federal Reserve rate hike, but it failed to provide enough momentum for Bitcoin to extend its recent recovery.
The world’s largest cryptocurrency was last up around 0.1% at $63,866.2 by 03:09 ET (07:09 GMT).
Bitcoin has remained largely trapped between $63,000 and $65,000, with buyers struggling to push the cryptocurrency decisively above the upper end of that range.
U.S. CPI Keeps Focus on Federal Reserve Policy
U.S. consumer prices increased 0.1% month-on-month in July, while annual inflation stood at 3.4%, matching economists’ forecasts.
Core CPI, which excludes volatile food and energy prices, rose 0.2% from the previous month and 2.5% from a year earlier. Both readings were also in line with expectations.
The inflation data eased some concerns that the Federal Reserve could raise interest rates at its September policy meeting.
According to CME Group’s FedWatch tool, traders reduced the estimated probability of a September rate hike to around 40%, down from approximately 54% before the CPI report.
Inflation Data Fails to Trigger Strong Market Rally
Despite the relatively supportive inflation figures, financial markets did not experience a sustained rally.
Investors are still waiting for additional economic indicators that could strengthen expectations that the Fed will avoid further monetary tightening.
Attention now turns to the latest U.S. Producer Price Index report, which is due later on Thursday and could provide further insight into underlying inflation pressures.
Geopolitical Tensions Weigh on Bitcoin
Geopolitical uncertainty also continues to pressure market sentiment.
Negotiations between the United States and Iran aimed at reducing tensions around the Strait of Hormuz have stalled. Washington and Tehran have reportedly presented competing conditions over reopening the strategically important shipping route.
The uncertainty has kept investors cautious across risk-sensitive assets, including cryptocurrencies.
Bitcoin Faces Resistance Around $64K-$65K
Bitcoin’s recent trading activity also reflects a broader loss of momentum.
The cryptocurrency continues to face significant resistance in the $64,000 to $65,000 region, preventing a stronger recovery from taking shape.
A convincing move above this area could improve short-term sentiment, while continued rejection may keep Bitcoin confined to its recent trading range.
Jackson Hole Becomes the Next Major Fed Event
Investor attention is also beginning to shift toward the Federal Reserve’s annual Jackson Hole symposium later this month.
Comments from policymakers at the event could offer further clues about the direction of U.S. interest rates and the Fed’s longer-term monetary policy strategy.
Interest-rate expectations remain particularly important for Bitcoin and other risk assets because tighter monetary conditions can reduce investor appetite for speculative investments.
Bitcoin ETF Inflows Provide Some Support
Despite the cautious short-term outlook, institutional demand continues to provide some support for Bitcoin.
U.S. spot Bitcoin exchange-traded funds (ETFs) have recently recorded renewed capital inflows, although daily flows remain inconsistent.
Continued institutional demand could help limit downside pressure if broader market sentiment remains uncertain.
Altcoins Trade Mixed as Crypto Market Stays Range-Bound
Most major altcoins also traded within narrow ranges on Thursday as investors maintained a cautious stance.
Ethereum, the world’s second-largest cryptocurrency, gained approximately 0.3% to $1,897.22.
XRP declined around 0.6% to $1.014, while Solana edged 0.2% higher.
Cardano slipped approximately 0.5%, while meme cryptocurrency Dogecoin fell around 1.3%.
Overall, the cryptocurrency market remains range-bound as traders balance easing inflation concerns against uncertainty surrounding Federal Reserve policy, geopolitical risks and upcoming U.S. economic data.
