Bitcoin Holds Steady Amid Soft US Inflation Data
Bitcoin's price failed to hold above $64,000 despite July US inflation matching market forecasts. The Consumer Price Index (CPI) rose 3.4% year over year, down from 3.5% in June and meeting expectations.
The CPI report had little impact on Bitcoin's price, which initially faced selling pressure but remained close to the $64,000 level. Expectations for a September rate increase fell to about 34%, roughly half the level recorded in late July.
US stock futures moved higher as softer annual inflation reduced expectations that the Federal Reserve would need to tighten monetary policy further at its September meeting.
Long-term holder-adjusted Net Unrealized Profit and Loss (NUPL) indicator has moved deeper into negative territory among long-term holders, suggesting investors who normally hold BTC through periods of volatility are now carrying larger unrealized losses than the broader market.