Bitcoin price has failed to hold above $64,000 despite July US inflation matching market forecasts. Before the CPI release, BTC briefly moved above $64,400, but it dropped toward $63,800 after a report that the US-Iran war could proceed longer after denial of a memorandum of understanding.
According to reports, US consumer prices rose 3.4% year over year in July, down from 3.5% in June and matching expectations. Core CPI, which excludes food and energy prices, came in at 2.5%, while monthly headline inflation rose 0.1% following a 0.4% decline in June.
Bitcoin Holds $64K as CPI Meets Forecasts
Bitcoin avoided a larger move after the inflation report delivered few surprises for traders. The cryptocurrency initially faced selling pressure after the release but remained close to the $64,000 level, limiting the immediate downside following the macro event.
Expectations for a September rate increase fell to about 34% after the CPI figures, roughly half the level recorded in late July. US stock futures also moved higher as softer annual inflation reduced expectations that the Federal Reserve would need to tighten monetary policy further at its September meeting.
The inflation report arrived as energy prices remained elevated compared with levels before the US-Iran conflict. Gasoline prices declined nearly 3% during July but remained about 15% higher than a year earlier, while Brent crude continued to react to uncertainty surrounding negotiations involving Washington and Tehran.
