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Bitcoin steadies near $63,863 as July inflation data eases Fed pressure
July core CPI rose 0.2% month over month and 2.5% year over year, and the softer inflation print reduced the outlook for September rate hikes.
Bitcoin was largely flat after US inflation data in July came in subdued, with the largest cryptocurrency recently around $63,863 and only slightly lower before holding steady over the prior 24 hours, according to Bitcoin Magazine.
The report highlighted that the core consumer price index, excluding volatile food and energy, rose 0.2% from a month earlier and 2.5% from a year earlier, the slowest pace since March 2021. It also noted that energy and gas prices fell for a second month and grocery prices dropped for the first time since March.
Bitcoin Magazine said the softer inflation reading took pressure off Federal Reserve Chairman Kevin Warsh to raise interest rates in September and, by easing the path toward rate cuts, reduced the opportunity cost of holding an asset that pays no yield.
The outlet also pointed out that inflation is still higher than a year ago and that wages are not keeping up, while Bitcoin has faced increased volatility since US and Israel attacks on Iran in February, leaving it down nearly 30% year to date. It added that spot Bitcoin exchange traded funds in the US saw massive inflows, the biggest since April last week, even as the crypto industry absorbed a large Coldcard hardware wallet exploit and delays related to the Clarity Act digital asset market structure bill.
Latest closeBitcoin $63,445.80 ▼0.2%