Bitcoin Softens to $62,000 Range Over Weekend as Middle East Risk Weighs Despite CPI Passing

Bitcoin (BTC) faced persistent upside resistance this week as Middle East tensions weighed on sentiment, even as U.S. inflation data showed the expected cooling. Yuya Hasegawa, an analyst at major Japanese exchange bitbank, noted that the yen-denominated price "remained in a slightly weak tone" at around ¥10.1 million (approximately $63,400) as of midday on the 14th. In dollar terms, BTC fell to around $62,500, approaching its August lows.

The week began with BTC trading around ¥10.3 million (approximately $64,700) against the yen, but hopes for a peace deal faded as both the U.S. and Iran filed competing war reparations claims. Amid surging crude oil prices, BTC was sold down to around ¥10.2 million (approximately $64,000) during U.S. trading hours. On the 11th, Iran again rejected calls to lift its blockade of the Strait of Hormuz, pushing BTC below ¥10.2 million. Midweek, U.S. interest rates rose following the July CPI release, and BTC failed to reclaim the ¥10.2 million level. The market remained relatively firm thereafter but lacked clear direction.

Hasegawa pointed out that both U.S. CPI and Producer Price Index (PPI) data showed year-over-year inflation deceleration, and fed funds futures markets saw reduced expectations for a rate hike at the September FOMC meeting. Given that Fed Chair Warsh had explicitly stated he was prepared to hike rates at the September meeting depending on August inflation data, Hasegawa assessed that this week's figures "provided a measure of reassurance for the market."