Bitcoin stayed stuck below $64,000 on Thursday even after in-line consumer prices and a flat producer price reading eased fears of a near-term Federal Reserve rate hike. The softer data lifted odds the Fed holds rates steady in September, but crypto traders found little reason to push the token past its recent resistance.
Bitcoin was last little changed at $63,452.1 by 17:07 ET, having largely remained within a $63,000-$65,000 range. The token has struggled to clear the $65,000 level even as broader inflation data has come in soft.
Producer and consumer prices both cool
The Labor Department's Producer Price Index was unchanged in July, missing forecasts for a 0.2% increase and following a 0.1% decline in June. A drop in gasoline costs weighed on the reading. Annual PPI slowed to 4.7% from 5.5% the prior month, undershooting forecasts of 4.9%.
Core PPI, which excludes only food and energy, climbed 0.2% month-over-month, a slowdown from June's 0.4% pace and below the 0.3% economists projected. That followed Wednesday's data showing U.S. consumer prices rose 0.1% in July and 3.4% from a year earlier, matching expectations, while core CPI increased 0.2% monthly and 2.5% annually.
Following the release, markets priced in better than a two-in-three chance the Fed holds rates steady at its September meeting, according to the CME FedWatch tool. Even so, the softer rate hike odds were not enough to trigger a sustained crypto rally.
Geopolitics and Fed outlook weigh on sentiment
Geopolitical risk also remains a drag. U.S.-Iran negotiations aimed at easing tensions around the Strait of Hormuz have stalled, with Tehran and Washington setting competing conditions for reopening the shipping route.
Attention is also shifting toward the Federal Reserve's Jackson Hole symposium later this month, where policymakers could offer clues on the longer-term rate path. Despite the cautious near-term tone, spot Bitcoin ETFs recently recorded renewed inflows, though flows have been uneven.
Altcoins trade in narrow ranges
Most altcoins moved little on Thursday. Ethereum added 0.6% to $1,888.38, while XRP gained 0.5% to $1.0093. Cardano and Solana climbed 0.6% and 1%, respectively, and Dogecoin improved 1.3%.
Source: Investing.com
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