Bitcoin slipped to $62,721.51 on Friday, breaking from gold and silver even as softer inflation data lifted the metals this week. Bitcoin ETF outflows, a hawkish Bank of Japan outlook and rising geopolitical risk around the Strait of Hormuz are adding to the pressure, while chart levels near $62,300 and $64,488 are shaping the near-term path.
Bitcoin fell to $62,721.51 as of 8:14 a.m. ET Friday, after opening the day at $63,418.16. The move extends a slide that has pulled bitcoin and ether in the opposite direction of gold and silver, which have moved higher and held those gains on the back of this week's softer inflation data.
Several factors are limiting crypto's recovery, including heavy investor interest in AI, ETF outflows, persistent inflation concerns despite the July reports, and stalled legislation.
ETF outflows and a hawkish BoJ add pressure
Bitcoin ETFs posted $131 million in outflows on August 13, according to SoSoValue data cited by CoinGape. Ether and XRP were the only funds to draw inflows that day, at $6.72 million and $2.25 million respectively.
The Bank of Japan is also weighing on sentiment. Reuters reported the central bank plans to raise rates at its September meeting and then hike more than twice a year afterward, a stance that diverges from expectations that the Federal Reserve will hold its own rates steady in September. Prediction markets show the odds of a Fed rate hike have dropped to 27%, after July producer price data fell to 4.5%.
Geopolitical risk is compounding the pressure, too. A drone struck a tanker in the Strait of Hormuz on August 14, after which Iran demanded that ships passing through seek permission from its military, pushing oil to $81 a barrel.
Bitcoin holds near key support
BTC traded around $63,567 on Friday after buyers defended the $62,300 support level a day earlier. The price still sits below its 50-day, 100-day and 200-day moving averages, between $64,488 and $72,035, keeping the broader trend bearish.
Bitcoin's Relative Strength Index stands near 46, with a negative MACD reading, signalling weak momentum despite the bounce. A daily close below $62,300 would invalidate the short-term rebound and could expose the cycle low near $57,800.
Total crypto market liquidations climbed 59% over 24 hours to $252 million, with long positions accounting for $135 million of that total.
Sources: Yahoo Finance, CoinJournal, CoinGape
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