Crypto Market Consolidates Around $64K as Soft CPI Eases Rate-Hike Fears

The crypto market has been rangebound, with Bitcoin holding near $63,000-$64,000 and total crypto market capitalization hovering around $2.16 trillion. This cautious behavior is attributed to the softer U.S. inflation data released on Thursday.

The July consumer inflation rose about 0.1% month over month and 3.4% year over year, while core CPI eased to roughly 2.5%. Although this disinflation trend is positive for the market, the numbers were close to expectations, leading to a muted reaction from traders.

Crypto market capitalization has been stuck in consolidation mode, with the four-hour TradingView chart showing total crypto market capitalization near $2.16 trillion below the 50-period exponential moving average around $2.17 trillion. The Relative Strength Index (RSI) stood at 47, indicating a neutral-to-cautious outlook.

BTC dominance has also weakened, with Bitcoin's share of the crypto market falling to 59.06% from recent highs near 59.5%. This decline suggests selective rotation towards altcoins, with coins such as Hyperliquid's HYPE and Monero outperforming Bitcoin in recent trading.