Bitcoin Surges Past $64,000 on Soft Inflation Data and Volatility Compression

Bitcoin broke through $64,000 on Monday, its highest level since August 11th, but it's not clear whether this is due to a truce between the US and Iran or other market forces.

The news of an extended ceasefire was reported by Saudi broadcaster Al Arabiya and Turkish agency Anadolu, citing sources. However, Iranian officials have contradicted these claims, stating there were no talks about extending the 60-day period.

Despite this, Bitcoin's price surged on Monday, with a gain of almost 2 percent or $1,230 in a single day. This move was not solely driven by the Iran news, as an uptrend began around 02:00 UTC before the truce report circulated.

The actual drivers behind Monday's rally were softer US inflation data, which trimmed the odds of a September Fed hike and pushed the dollar to its weakest level since early June. Additionally, support defense, volatility compression, and positioning also played roles in Bitcoin's price increase.