Bitcoin Drops Below $64,000: US Inflation Fails to Provide a New Catalyst
US inflation data, which came in line with expectations, pulled Bitcoin prices below $64,000 but failed to create a new catalyst to push the cryptocurrency out of the $62,000–$66,000 range it has occupied for weeks.
Bitcoin (BTC) declined on Wednesday after July’s US Consumer Price Index (CPI) data was released in line with expectations. Following last week’s employment data shock, the market was waiting for inflation figures to clarify the Federal Reserve’s (Fed) September decision.
Headline CPI rose 3.4% annually, while core CPI increased by 2.5%. In June, these rates were 3.5% and 2.6%, respectively. Both data points arriving in line with expectations gave the Fed room to wait but failed to establish a strong bullish foundation for Bitcoin.
Uncertainty Persists Ahead of Fed Decision
Ryan Lee, Chief Analyst at Bitget Research, stated that the data led to neither a hawkish repricing nor a dovish catalyst. According to Lee, the market’s focus has shifted to the Jackson Hole meeting and upcoming inflation data.
Iggy Ioppe, CEO of Theo, noted that every day the Fed remains inactive creates a de facto easing effect for markets. Fabian Dori from Sygnum Bank stated that the data did not spark recession fears or expectations for a more aggressive Fed, meaning the macro outlook for risky assets remains unchanged. Capital.com analyst Daniela Sabin Hathorn sees a 60/40 chance that no interest rate change will be made in September.
The derivatives market maintained its cautious stance. Andrei Grachev of DWF Labs reported that the cost of hedging against a decline remains high compared to bullish trades. Bitfinex analysts noted a 210,000 Bitcoin decrease in long-term investor supply, while the balance held by whales with over 1,000 BTC reached a peak of 3.06 million Bitcoin, the highest since 2026.
Perpetual futures activity also fell to a three-year low prior to the data release. The market’s next focus is the Producer Price Index (PPI) data.