US Inflation Drops to 3.4%: Bitcoin Holds at $64,000

As July inflation dropped to 3.4% in line with expectations, the Bitcoin price maintained its course around $64,000.

The Consumer Price Index (CPI) in the US rose 0.1% on a monthly basis in July. Economists’ expectations were also for a 0.1% increase. The index had fallen 0.4% in June. Annual CPI growth met forecasts at 3.4%, remaining below the 3.5% level seen in June.

Core CPI, which measures price pressure excluding food and energy items, also rose 0.2% monthly in July. Expectations for this data were a 0.2% increase, and no monthly change was observed in June. Annual core inflation came in at 2.5%, meeting expectations and dropping from 2.6% the previous month.

Bitcoin Holds at $64,000 After CPI Data

Following the data release, the Bitcoin price pulled back from $64,400 to $64,080 in a brief sharp reaction but later stabilized. While Bitcoin was trading around $64,105.64, it remained largely flat over the last 24 hours. At the same time, Nasdaq 100 futures rose 0.7%.

US Treasury yields continued their weak performance seen before the CPI. The two-year yield fell by 3.6 basis points to 4.19%, while the 10-year yield dropped by 3 basis points to 4.66%. Market interest in the inflation report increased after weak employment data showed that the economy lost 23,000 jobs in July, contrary to expectations.

According to CME FedWatch Tool data, investors lowered the probability of a Federal Reserve rate hike at the September meeting to 44%, down from 48% before the data. A week ago, this probability was priced at 54%.