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

Bitcoin traded flat on Thursday, struggling to gain traction below the $64,000 mark as softer-than-expected U.S. inflation data failed to provide a strong catalyst for a market rally.

As of 9:48 AM ET, the world's largest cryptocurrency was largely unchanged, trading at $63,841.2. The asset has been consolidating within a tight range between approximately $63,000 and $65,000, consistently failing to break through the key resistance at the upper end of that channel.

Inflation Cools, But Market Unimpressed

Investors digested a U.S. Producer Price Index (PPI) report for July that showed prices were unchanged month-over-month, falling short of economists' forecasts for a 0.2% increase. The annual PPI rate slowed to 4.7% from 5.5% in the prior month, also below the 4.9% consensus estimate.

This data, combined with an in-line Consumer Price Index (CPI) report on Wednesday, has reinforced market expectations that the Federal Reserve will pause its interest rate hikes. According to the CME FedWatch Tool, traders are now pricing in a greater than two-thirds probability of the Fed holding rates steady at its September meeting. However, the dovish economic signals have not been sufficient to spark a sustained rally in crypto markets.

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Broader Market Remains Subdued

The cautious sentiment was visible across the digital asset space, with most alternative coins, or altcoins, trading sideways. Key takeaways include:

• Ethereum (ETH): The second-largest cryptocurrency fell 0.5% to $1,893.22.
• XRP: The token was down 0.8%, trading at $1.007.
• Other Altcoins: Solana (SOL) and Cardano (ADA) posted negligible changes, while meme coin Dogecoin (DOGE) slipped 0.5%.

This lack of directional momentum suggests that investors are waiting for a more definitive signal before deploying capital. Market participants are now looking ahead to the Federal Reserve's annual symposium in Jackson Hole later this month for further guidance on the long-term trajectory of interest rates.