Bitcoin Reclaims $64,000 as Dollar Weakens and Fed Hike Fears Ease

Bitcoin climbed back above the $64,000 mark on Monday, recovering a level it had lost a week earlier as a softer U.S. inflation outlook and a sliding dollar overshadowed conflicting reports about a possible extension of the U.S.-Iran truce.

The largest cryptocurrency traded at $64,332 as of 8:20 a.m. in Seoul on Tuesday, up 2.39% over the previous 24 hours, according to CoinMarketCap. The token had dipped to $62,530 on August 14 before staging a four-day rebound that carried it through the $64,000 threshold.

The recovery came as investors recalibrated expectations for Federal Reserve policy. July U.S. retail sales fell short of consensus forecasts, prompting traders to scale back bets on another rate hike. That shift rippled through currency and bond markets, with the dollar index dropping 0.3% to 99.19 on Monday in New York, its lowest level since June. The 10-year Treasury yield also declined to 4.68%.

A weaker dollar and lower yields typically improve conditions for risk assets, and digital currencies were among the beneficiaries. The macro backdrop, rather than geopolitical headlines, appeared to be the primary engine behind the move.

Saudi broadcaster Al Arabiya reported Monday, citing unnamed sources, that Washington and Tehran had agreed to extend the 60-day ceasefire framework that expired the same day. Turkish state agency Anadolu carried a similar account, pointing to Pakistani government sources. But neither government confirmed the extension, and the Jerusalem Post reported the deadline passed without a breakthrough, leaving the two sides divided over the Strait of Hormuz and Iran's nuclear program.