Gold Eyes $4,500 Breakout as Bitcoin Weakens Post-US CPI Data
The release of the US Consumer Price Index (CPI) report has triggered volatility in both Bitcoin and Gold. The report showed a seasonally adjusted increase of 0.1% in July, bringing annual inflation down to 3.4%, slightly easing from June's 3.5%. This aligned with broader market expectations.
Despite inflation holding above the Federal Reserve's (Fed) 2% target, consecutive subdued monthly prints suggest that the energy-driven surge in the second quarter is losing steam. However, price volatility may persist while markets closely track ongoing uncertainty in the Middle East.
BTC/USDT traded at $63,585 on Wednesday, keeping a bearish near-term tone as the price held beneath key moving averages. The ongoing slide below the upward support trendline reinforced the idea of a capped market, with momentum remaining soft and downside pressure evident.