Bitcoin Holds Steady at $64,130 as CPI Print Comes In Line with Expectations
Bitcoin's price held steady at around $64,130 after the July Consumer Price Index (CPI) print, which came in line with expectations. The CPI rose 3.4% year-over-year and 0.1% month-over-month, while core inflation increased by 2.5% annually.
The market's muted reaction to the data is due to the fact that every number landed on the estimate, leaving no reason for a repricing of Bitcoin's price. The asset traded within a tight range between $63,534 and $64,218, with the low of the session coming in at $63,204 before buyers stepped in and reclaimed the $64,000 handle.
The thesis is that Bitcoin is currently in a supply-transfer regime, where ETF holders and large corporate treasuries are releasing coins, which are being absorbed by whales and shark wallets within the $63,000 to $65,000 band. The market's liquidity and leverage combination has led to a violent range expansion when one side finally breaks.
The next key event is the September 15-16 Federal Open Market Committee (FOMC) meeting, which could force a break in the current coil and resolve the five-week consolidation between $63,392 and $65,700.