Bitcoin Falls Below $64K as Oil Prices and Inflation Concerns Weaken Risk Appetite

Bitcoin's price fell to $63,780 on August 11 before recovering above $64,000 as traders eyed the $63,900 support level ahead of the July CPI report.

The decline followed rising oil prices and reduced hopes for an agreement between the US and Iran over reopening the Strait of Hormuz, which put pressure on risk assets. Brent crude rose above $89 a barrel, complicating the Federal Reserve's inflation outlook by increasing transportation and production costs.

Higher oil prices also reduced institutional demand as U.S. spot Bitcoin exchange-traded funds recorded $144.6 million in net outflows on August 10, ending five consecutive sessions of positive flows. The reversal reduced one source of spot demand as macroeconomic uncertainty increased.