Bitcoin Tumbles as Inflation Numbers Ease Rate Hike Odds

Leading cryptocurrencies fell Wednesday even as stocks rallied on the latest consumer inflation numbers. The July Consumer Price Index rose 3.4% from a year earlier, matching expectations, while core inflation eased to 2.5%, also as expected.

The odds of an interest rate hike in September fell to 40% from 48% the day before, according to the CME Fedwatch tool.

Bitcoin and Ethereum were hit with sharp selling pressure, while XRP and Dogecoin traded in the red. Over the past 24 hours, more than $175 million in crypto positions were liquidated, with short sellers accounting for $93 million of the losses, according to Coinglass data.

An increase in open interest on Bitcoin's chart over the last 24 hours indicates that short positions are being built up. Michaël van de Poppe, a widely followed cryptocurrency analyst and trader, said Bitcoin risks breaking down to $60,000 if it fails to hold current support near $63,500.