Bitcoin Stalls Above $65K as Inflation Data Looms

Bitcoin's price surged past $65,000 after a weaker-than-expected US employment report led to reduced expectations of Federal Reserve tightening. However, it failed to hold above this level and has since faced resistance between $65,000 and $66,000.

The economy lost 23,000 nonfarm payroll jobs in July, with the jobless rate stuck near 4.1%. The Fed's comments on July 29 were non-committal, although three voting members voted for a 25bp hike.

Coinciding with the price recovery was a surge in institutional demand: US spot Bitcoin ETFs saw net inflows of around $854 million from August 3 to 8, with $694 million going into BlackRock's IBIT alone. Analyst Michaël van de Poppe identified $65,800 as a critical level, stating that if it can remain open, a push towards $73,700 could follow.

Now, the focus turns to the release of the Bureau of Labor Statistics' July consumer price index (CPI) data on August 12. If it's a strong reading, it may raise Fed hawkish expectations and pressure risk assets. A weak inflation print might justify the market's response to the lackluster jobs report.