Bitcoin holds below $64k as in-line U.S. CPI provides little support
Investing.com-- Bitcoin held steady below $64,000 on Thursday as investors assessed an in-line U.S. inflation report that eased fears of a near-term Federal Reserve rate hike but offered little fresh impetus for the cryptocurrency to extend its recovery.
The world's largest cryptocurrency last traded 0.1% higher at $63,866.2 by 03:09 ET (07:09) GMT.
Bitcoin has largely remained within the $63,000-$65,000 range and has struggled to regain momentum above the $65,000 level.
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Traders weigh Fed outlook after U.S. CPI
U.S. consumer prices rose 0.1% in July from June and were up 3.4% from a year earlier, matching economists' expectations. Core CPI, which excludes food and energy, increased 0.2% month-on-month and 2.5% year-on-year, also in line with forecasts.
The data reduced pressure on the Fed to raise interest rates at its September meeting.
Traders cut the probability of a September hike to about 40% from 54% before the report, according to CME Group's FedWatch too.
For financial markets, however, the softer inflation reading was not enough to trigger a sustained rally. Investors remain focused on whether upcoming economic data can reinforce expectations that the Fed will refrain from further tightening.
The next major test comes from Thursday's U.S. producer price report, due later in the day.
Geopolitical risks also remained a drag. U.S.-Iran negotiations aimed at easing tensions around the Strait of Hormuz have stalled, with Tehran and Washington setting competing conditions for reopening the crucial shipping route.
Bitcoin's recent price action also reflects a broader loss of momentum. The token remains below important resistance around $64,000-$65,000.
Attention is also beginning to shift toward the Federal Reserve's annual Jackson Hole symposium later this month, where policymakers could provide clues on the longer-term rate path.
Despite the cautious near-term tone, institutional demand has provided some support. U.S. spot Bitcoin ETFs recently recorded renewed inflows, although flows have been uneven.
Crypto price today: altcoins mixed, remain range-bound
Most altcoins traded in narrow ranges Thursday amid a cautious mood.
World no.2 crypto Ethereum edged up 0.3% to $1,897.22.
World no. 3 crypto XRP fell 0.6% to $1.014.
Solana ticked 0.2% higher, while Cardano slipped 0.5%.
Among meme tokens, Dogecoin fell 1.3%.
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