Bitcoin Stalls Near $64K as US Stocks Surge on Cooler PPI Data

Bitcoin's price action near $64K remains uncertain as US stocks gain momentum following cooler-than-expected US Producer Price Index (PPI) data. The July PPI print was unchanged month-on-month at 0.2%, while year-on-year increased 4.7% versus an anticipated 4.9%. This further cools market bets on interest-rate hikes from Federal Reserve policymakers.

The S&P 500 index and tech-heavy Nasdaq Composite index were up 0.87% and 0.94%, respectively, at the Wall Street open. CME Group's FedWatch Tool showed 65.6% odds of Federal policymakers holding rates at the current 3.50-3.75% level at the September FOMC meeting.

Cleveland Federal Reserve Bank president Beth Hammack questioned whether recent cooler data prints would be enough to bring inflation down to the Fed's 2% target, stating 'Maybe we'd get there, but if it takes another three to four years to get there, is that OK? Is that enough?'

The BTC price action remains within a tight range, with market participants focusing on extremes. Rafael Schultze-Kraft, cofounder of onchain analytics platform Glassnode, suggested $61,000 could become a flashpoint due to large potential long position liquidations.