Bitcoin Slides Below $64K as In-Line CPI Data Fuels Caution

Bitcoin fell below $64,000 on Wednesday after the US Bureau of Labor Statistics reported that July's inflation rate was in line with forecasts at 3.4% year-over-year.

This lackluster CPI reading has analysts saying it buys the Federal Reserve time, but not necessarily conviction to raise interest rates in September.

Ryan Lee, chief analyst at Bitget Research, noted that an in-line CPI reading 'neither forces a hawkish re-pricing nor delivers a clear dovish catalyst,' preserving current expectations and shifting focus to the Jackson Hole symposium and future inflation numbers.

Some analysts believe this data will have little impact on the Federal Reserve's decision-making process, with Daniela Sabin Hathorn of Capital.com calling it 'a helpful report rather than an all-clear' and stating that a September rate hike is still possible at 60/40 odds.