Bitcoin Price Slumps on Cooling Inflation Despite Fed Room

The Bitcoin price dropped from $65,234 to $63,304 after July's consumer inflation cooled to 3.4%, giving the Federal Reserve room to stop raising rates.

However, instead of sending the Bitcoin price higher, it fell on both prints, with the Nasdaq and S&P 500 climbing in response to the same news.

This lack of reaction is a warning sign, according to Glassnode, as buyers waiting for good news may not be buying when it arrives.

The market's short-term pressure has eased, but traders still expect rates to go up by year-end, which keeps the Bitcoin price in check.