Bitcoin Trapped Below $65K as Stagflation Concerns Intensify

Bitcoin's price has stagnated below $65,000 as investors await further clarification on the Strait of Hormuz oil route reopening. Iran tempered expectations, stating that a deal with Oman does not necessarily mean the route will reopen.

The US Institute for Supply Management (ISM) Services PMI and employment data showed a divergence between PMI rising to 54.1 in July and employment dropping to its lowest reading since March. This has sparked concerns of 'stagflation', a combination of stagnating economic growth and inflation.

Analysts from Glassnode and Bitfinex Research agree that Bitcoin's price is not yet showing signs of capitulation, but rather a lack of reaction to external market fluctuations. They suggest that a more decisive macro bottom trigger is needed for a genuine breakdown in the market.