Stagflation Fears Keep Bitcoin Price Coiled Below $65K

The Bitcoin price has been stuck in a holding pattern below $65K, and it's not due to any crypto-specific issue. Instead, stagflation fears are weighing on the market.

The S&P Global US Manufacturing PMI for July 2026 came in at 53.9, marking 12 consecutive months of expansion in factory activity. However, new orders and output growth both hit four-month lows, while input costs remained elevated due to tariffs and energy prices.

This slowdown in growth combined with persistent inflation is the classic stagflation scenario. Bitcoin's correlation with traditional assets has been declining throughout 2026, and its relationship with gold has weakened as well.

The price action remains stuck within a range of $63K to $65K, showing little appetite for a breakout. Meanwhile, Bitcoin ETFs have experienced hundreds of millions in outflows during early August 2026, reinforcing short-term selling pressure tied to stagflation-adjacent data releases.