Crypto Prices Slide Despite Stocks Rallying on Inflation Numbers

Cryptocurrency prices slipped on Wednesday, despite stocks rallying after the release of consumer inflation numbers that met expectations. Bitcoin dropped by 0.23% to $63,424.63, while Ethereum fell by 0.38% to $1,875.68. XRP and Dogecoin also traded in the red, down 1.88% and 3.24%, respectively.

Major indexes lifted on Wednesday, with the S&P 500 rising 0.26% and the Nasdaq Composite gaining 0.54%. However, cryptocurrency-related stocks fell, with Strategy Inc. closing down 1.31% and Bitmine Immersion Technologies Inc. down 1.73%.

The odds of an interest rate hike in September dropped to 40% from 48% the day before. Bitcoin's open interest rose by 0.49%, indicating short positions are being built up.

Michaël van de Poppe, a widely followed cryptocurrency analyst and trader, said that if Bitcoin fails to hold current support near $63,500, it risks breaking down to $60,000. CryptoQuant observed that Bitcoin's losses have spread beyond speculative traders and are now being borne by long-term holders.

CryptoQuant noted that Bitcoin is displaying a condition repeatedly associated with macro bottoms but not yet the emotional and financial exhaustion that made previous bottoms unmistakable.