Bitcoin Stagnates Below $65K as US PMI Data Sparks 'Stagflation' Fears

Bitcoin's price remained stagnant below $65,000 on Thursday as markets awaited further geopolitical cues. The US PMI data showed signs of 'stagflation' returning as a potential future risk, with the prices paid index surging +2.6 points to 70.3, near its highest level since October 2022.

The Strait of Hormuz oil route reopening, which had sparked hopes of volatility in the market, remained uncertain due to the absence of US participation. Iran's Deputy Foreign Minister Kazem Gharibabadi stated that 'this understanding does not, in itself, mean that the Strait of Hormuz will reopen.'

Bitfinex Research noted that Bitcoin's price indecisiveness meant that the market still lacks a 'genuine breakdown,' while Glassnode described it as showing 'boredom rather than capitulation.' The platform also stated that the regime is characterized by a compressed, under-owned market that global risk appetite has left behind.

The US services PMI data showed a divergence continuing, with PMI rising 0.1 point in July to 54.1, while employment dropped 3.6 points to 47.4, its lowest reading since March.