Bitcoin Price Coils Under $65K as US Stagflation Warning Intensifies

The price of Bitcoin (BTC) remained stagnant around $64,000 at the start of Thursday's trading session as concerns over potential 'stagflation' in the US economy continued to weigh on markets.

Data from the Institute for Supply Management (ISM) showed a divergence between the Services PMI and employment data, with the former rising 0.1 point to 54.1 and the latter dropping 3.6 points to 47.4, its lowest reading since March.

'At the same time, the prices paid index surged +2.6 points, to 70.3, near the highest since October 2022,' said The Kobeissi Letter. 'In other words, the economy is increasingly under pressure from both rising prices and a weakening labor market.'

Iran's Deputy Foreign Minister Kazem Gharibabadi tempered expectations over the Strait of Hormuz oil route reopening, stating that 'This understanding does not, in itself, mean that the Strait of Hormuz will reopen.'

As markets await further geopolitical cues, analysts are warning of a potential stagflation scenario. Bitfinex Research noted that 'a genuine breakdown requires something more forceful, followed by volume-supportive price action.'