Bitcoin Ignores Good Inflation Data as Demand Stays Absent: What's Going On?

Bitcoin (CRYPTO: BTC) spot trading volume have hit its lowest level since 2019 as sellers tire and buyers stay absent, leaving the market wound tight between $63,000 and $68,700.

Glassnode analyst Frederik Theissen wrote in the firm’s weekly on-chain report that July CPI came in at 2.5% core, equities sit at record highs, and Bitcoin barely bounced. 

Flat inflation with policy on hold is about as benign a backdrop as markets get, and the fact that Bitcoin could not build on it points to one thing: demand is absent.

Why Is BTC Price Stuck Between $63,000 and $68,700?

Glassnode’s report put Bitcoin pinned between two cost-basis levels. The Median Realized Price at $63,000 has absorbed every test from above for more than a month. 

The Short-Term Holder Cost Basis at $68,700 sits overhead, representing the average entry price of the market’s most recent buyers who are currently underwater and historically quick to sell into any recovery.

Price has spent nearly three months in this pocket as the two levels keep converging. 

Reclaiming $68,700 would flip recent buyers back into profit and open the first real test of overhead supply; losing $63,000 leaves little structure before the June lows.

Why Sellers Are Tiring but Buyers Are Still Missing