Bitcoin Slumps Below $63K as US CPI Relief Sends September Rate Pause Odds to 60%

Bitcoin (BTC) dipped below $63,500 on Wednesday as markets reacted to key US inflation data. The Consumer Price Index (CPI) figures for July matched expectations, showing a 0.1% month-on-month increase and a 3.4% year-over-year rise.

Despite the good news on CPI, the Fed rate-hike odds cooled further as attention now switches to Thursday's Producer Price Index (PPI) numbers. The latest data from CME Group's FedWatch Tool saw 60% odds of the Fed holding rates at the current 3.50-3.75% level at its September meeting, up from 30% a month ago.

Bitcoin is eroding $63,000 support, according to market analysis. Rekt Capital warned that each bounce from $63,000 was more and more lacking in trajectory, and the progressively weakening support at this level is clear. The analyst added that at some point the bounces will become so weak that the floor will simply break.