Bitcoin eyes $63K as US CPI relief sends September Fed rate pause odds to 60%

Bitcoin (BTC) saw weakness around Wednesday’s Wall Street open as markets reacted to key US inflation data.

Key points:

• Bitcoin ignores good news around US inflation figures as it dips below $63,500.
• Fed rate-hike odds cool further as attention now switches to Thursday’s PPI numbers.
• Bitcoin is eroding $63,000 support, the latest market analysis warns.
  

Bitcoin falls despite US inflation data matching expectations

Data from TradingView showed BTC/USD dropping below $63,500, erasing the day’s gains.

BTC/USD one-hour chart. Source: Cointelegraph/TradingView

US stocks were calm after the July print of the US Consumer Price Index (CPI) matched expectations, at 0.1% month-on-month and 3.4% year-on-year.

“The index for shelter rose 0.1 percent in July, accounting for roughly two-thirds of the monthly all items increase. The index for food also increased 0.1 percent over the month, as the index for food away from home increased 0.3 percent. In contrast, the energy index declined 1.5 percent in July,” an official release from the Bureau of Labor Statistics (BLS) reported.

US CPI 12-month % change. Source: BLS

While not repeating the surprise move to the downside seen in June, CPI inflation avoided injecting volatility into risk assets. Among safe havens, gold remained stable after reaching its highest levels in nine weeks on Tuesday.