Bitcoin Stays Put Near $64,500 as US Inflation Rates Cool

Bitcoin held steady near $64,500 as markets showed cautious optimism despite cooling US inflation rates. The June PCE price index matched market expectations at 3.7%, down from 4.1% in May.

The easing of pressure on risk assets, particularly semiconductor shares, helped sentiment recover somewhat, with the S&P 500 rising 1% and the Nasdaq Composite gaining 2.3%. Bitcoin's price remained relatively stable, trading near $64,500 on TradingView.

Market analysts noted that the PCE is an important indicator for the US Federal Reserve (Fed), which considers it when judging inflation trends. However, despite signs of cooling inflation, market reaction was cautious, with some experts highlighting that the 3.7% figure remains above the Fed's target rate of 2.0%. Johns Hopkins economist Steve Hanke pointed out the gap from the target.

Bitwise chief investment officer Matt Hougan suggested that the impact of future rate announcements on bitcoin prices may be smaller than in the past, citing expected rate changes over the next year amounting to a 50 basis point increase. He also mentioned potential differences in policy direction under new Fed Chair Kevin Warsh and speculated about his possible dovish stance.