Bitcoin Stuck at $65K as US Economy Shows Signs of Stagflation

Bitcoin (BTC) failed to break above $65,000 as the US economy showed signs of reemergent stagflation. The US Institute for Supply Management (ISM) Services PMI and employment data released on Wednesday 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.

The prices paid index surged +2.6 points, to 70.3, near the highest since October 2022. Prices paid have now trended higher for over 2 years, rising +16.9 points since March 2024. This has intensified the odds of stagflation based on the combined PMI readings.

Bitcoin's lack of reaction to gold hitting its highest levels in six weeks and the S&P 500 reaching all-time highs was noted by Glassnode, which described BTC/USD as showing 'boredom rather than capitulation'. Bitfinex Research also saw the need for a more decisive macro bottom trigger than current conditions could produce.