BTC Slips Below $63,700 as US Inflation Report Falls Short

Bitcoin's price slipped below $63,700 on Thursday after a US inflation report failed to generate enough momentum for a sustained cryptocurrency rally.

The July Consumer Price Index data showed headline inflation increased by 0.1% month over month and 3.4% annually, while core inflation rose 0.2% on the month and eased to an annual rate of 2.5%. The figures reduced the perceived likelihood of another Federal Reserve interest-rate increase in September, with futures markets lowering the probability of a rate hike to approximately 38%, down from 46% before the report's release.

The initial market reaction was positive, with Gold rising 1.3%, ETH gaining just over 1%, BTC climbing approximately 0.5%, and S&P 500 futures advancing 0.2%. However, the cryptocurrency gains proved short-lived.

Maksym Sakharov, co-founder and CEO of WeFi, stated that the softer print is welcome since the Fed will have more breathing room for deciding on a rate hike, but one release will not settle the argument over the inflation path due to pre-built volatility.