Bitcoin, Ethereum, XRP, Dogecoin Slide Even as CPI Figures Ease Rate Hike Odds: Analyst Says BTC 'Display

Stocks Rally After CPI Report

Major indexes lifted on Wednesday. The S&P 500 rose 0.26% to end at 7,748.50, while the tech-focused Nasdaq Composite gained 0.54% to close at 26,588.49. The Dow Jones Industrial Average, meanwhile, fell 0.04%, or 21.58 points, to close at 53,770.27.

The July Consumer Price Index rose 3.4% from a year earlier, matching expectations, while core inflation eased to 2.5%, also as expected.

Meanwhile, the odds of an interest rate hike in September fell to 40% from 48% the day before, according to the CME Fedwatch tool.

The Anatomy of Bitcoin’s Bottom

Michaël van de Poppe, a widely followed cryptocurrency analyst and trader, said Bitcoin risks breaking down to $60,000 if it fails to hold current support near $63,500

“The final level of support is that area; if that doesn’t happen, we’re very likely to be sweeping the lows again,” the analyst projected.

On-chain analytics firm CryptoQuant observes that Bitcoin’s losses have spread beyond speculative traders and are now being borne by long-term holders.

Historically, at each significant cycle bottom, long-term holders have been sitting on more severe unrealized losses than the broader market, the research firm stated.

“Bitcoin is displaying a condition repeatedly associated with macro bottoms, but not yet the emotional and financial exhaustion that made previous bottoms unmistakable,” CryptoQuant added.

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