Bitcoin edged up near $64,000 on Thursday after July producer price data came in cooler than forecast, a reading that also lifted US stocks. Fed officials stayed cautious on rate cuts even as traders watched $61,000 as a level that could trigger large long liquidations.
Bitcoin (BTC) moved away from its weekly lows on Thursday, trading around $63,900, up about 0.5% on the day. CoinGape put the price at $63,728.09, a 0.58% gain, after the release of July's producer price data.
July PPI extends a cooling trend
The US Producer Price Index for final demand held unchanged at 0.2% month-on-month in July, while the annual figure rose 4.7%, below the 4.9% forecast, Bureau of Labor Statistics data showed. Core PPI, which excludes food and energy, rose 0.2% from June, the smallest monthly gain since June 2015, with its annual reading at 4.2%, in line with expectations.
Falling energy costs drove the softer print. Energy prices dropped 3.1% for the month, led by a 5.7% fall in gasoline. As a result, US stocks gained at the open, with the S&P 500 up 0.87% and the Nasdaq Composite up 0.94% as the data further cooled bets on rate hikes.
Fed officials stay cautious despite cooler data
Even so, CME Group's FedWatch Tool showed 65.6% odds that policymakers hold rates at the current 3.50%-3.75% level at the September FOMC meeting, building on a boost from Wednesday's in-line July CPI print.
Fed officials had their biggest split over the rate path since 1970 in July and have continued to strike a cautious tone. Cleveland Federal Reserve Bank president Beth Hammack, one of three officials who voted for a rate hike in July, questioned whether recent cooler prints would be enough to bring inflation down to the Fed's 2% target.
$61,000 emerges as a key level to watch
With Bitcoin still trading in a tight range, traders are watching for potential long liquidations that could add momentum in either direction. Glassnode cofounder Rafael Schultze-Kraft said liquidation risk has built up around $61,000, and that forced selling there could add downside momentum if the price reaches it. Cointelegraph previously reported that $63,000 has also become a key support level after repeated retests.
Sources: Cointelegraph, CoinGape
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