Bitcoin Breakout Eyes $73K as Inflation Data Looms
Bitcoin's price broke through the $65K barrier in anticipation of the US inflation data for July, which was released on Wednesday. The economy lost 23,000 nonfarm payroll jobs in July, and the jobless rate remained near 4.1%. This weaker-than-expected employment report reduced the likelihood of renewed Federal Reserve tightening.
The release coincided with a surge in institutional demand, with US spot Bitcoin ETFs experiencing net inflows of around $854 million from August 3 to 8. Analyst Michaël van de Poppe identified a crucial price level of $65,800, predicting that if this level remains open, it could lead to a push towards $73,700.
The Consumer Price Index (CPI) fell by 0.4% in June and rose by 3.5% over 12 months. The core inflation rate was unchanged month-on-month but increased by 2.6% over the past year. Economists surveyed by Reuters predicted a decrease in headline inflation to 3.4% in July and core CPI to 2.5%.