Bitcoin Falls Below $63,500 as US CPI Matches Expectations

Bitcoin (BTC) fell below $63,500 on Wednesday, despite US inflation data matching expectations. The Consumer Price Index (CPI) rose 3.4% year-on-year, a figure that was in line with forecasts.

Fed rate-hike odds cooled further, and market attention shifted to Thursday's Producer Price Index (PPI) numbers. Fabian Dori, CIO at Sygnum Bank, noted the cooling CPI combined with weak labor-market figures could bolster the case for the Federal Reserve avoiding interest-rate hikes.

However, Andrei Grachev, managing partner at DWF Labs, pointed out that the Bitcoin options market still charges a material premium for protection. He warned that this premium may not ease until Thursday's PPI numbers are released.

Rekt Capital and Bitfinex Alpha echoed concerns about BTC's price strength, with Rekt warning that each bounce from $63,000 is lacking in trajectory and Bitfinex noting the overhead resistance zone remains strong.