Bitcoin Ignores Inflation Data for Third Straight Month

Bitcoin's price showed minimal reaction to the July CPI report, rising only 0.33%. This marks the third month of weak responses to inflation data from the cryptocurrency, which had previously shown a strong correlation with monetary policy expectations.

The shift in Bitcoin's behavior is attributed to factors such as Strategy's shift from buyer to seller and ETF flows decoupling from macro data.

Instead of being driven by macroeconomic indicators, Bitcoin's price is now influenced more by structural ETF demand, emerging market interest, and supply constraints from halving events.