Bitcoin's Correction Looms as Spot Demand Fails to Materialize

Bitcoin has been stuck in a narrow trading range between $63,000 and $64,000, failing to rally after the release of the latest U.S. inflation data. The Consumer Price Index (CPI) came in line with expectations, while the Producer Price Index (PPI) rose 0.0% month-over-month versus forecasts of a 0.2% increase.

The Treasury yields declined as expectations for further rate hikes eased, creating a supportive backdrop for risk assets. However, Bitcoin failed to participate in the same risk-on move, diverging from traditional markets.

The price is currently struggling to reclaim the $65,000, $66,000 resistance area, leaving the $61,500, $62,000 zone as an important near-term support. If that support breaks, the $60,000 level could come back into focus.