Bitcoin Traders Eye Breakout as Muted US Inflation Fails to Spark Rally
BTC USD has been trading at around $63,500 after a mild drop in US inflation from 3.5% to 3.4%. The market's reaction to this news was muted, with prices barely budging over the past 24 hours.
However, beneath the surface, there is a supply overhang that may be more significant than the current price action suggests. On Wednesday, BTC USD rallied sharply past $64,000 to a daily peak of $64,400 before reversing and sliding back down to around $63,500.
The move was accompanied by Strategy CEO Phong Le's statement that his company plans to resume buying Bitcoin later in 2026 after recently selling some assets. This news helped calm nerves in the market but also highlighted a key challenge for BTC USD: breaking through the resistance level of $64,500-$65,000.