Bitcoin Stalls Below $64,000 as Inflation Data Fails to Ignite Rally

Bitcoin held steady below the $64,000 mark on Thursday, as a U.S. inflation report that aligned with market expectations failed to provide a strong catalyst for the digital asset. The world's largest cryptocurrency traded up a marginal 0.1% to $63,866.2, remaining within a narrow range of $63,000 to $65,000.

Inflation Meets Expectations

The latest U.S. Consumer Price Index (CPI) report for July showed that prices rose 0.1% from the previous month and 3.4% from a year earlier, matching economists' forecasts. Core CPI, which strips out volatile food and energy costs, increased 0.2% month-over-month and 2.5% year-over-year, also in line with expectations.

While the in-line data eased immediate concerns about accelerating inflation, it did not provide a definitive signal for a more dovish Federal Reserve. The report offered little fresh impetus for risk assets like cryptocurrencies, which have been sensitive to shifts in monetary policy expectations.

Impact on Fed Outlook

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Following the CPI release, traders adjusted their bets on future Fed action. The probability of an interest rate hike at the central bank's September meeting fell to approximately 40% from 54% before the report, according to CME Group's FedWatch tool. However, investors remain focused on upcoming data, including the U.S. producer price report, for further confirmation of the disinflationary trend.

Market attention is also shifting toward the Federal Reserve's annual Jackson Hole symposium later this month, where policymakers may offer new guidance on the long-term path for interest rates. In the near term, Bitcoin faces technical resistance around the $64,000-$65,000 zone, while institutional demand via U.S. spot Bitcoin ETFs has provided some underlying support, albeit with uneven flows.

Altcoins Remain Mixed

The cautious sentiment was reflected across the broader cryptocurrency market, with most major altcoins trading in narrow ranges. Ethereum, the second-largest cryptocurrency, edged up 0.3% to $1,897.22. Other major tokens saw mixed performance, with XRP falling 0.6% while Solana ticked 0.2% higher.