Bitcoin remained near the $64,000 level on Thursday as cooler-than-expected US Producer Price Index (PPI) data provided a boost to equities and eased concerns about further interest-rate hikes.
Bitcoin (BTC) was trading around $63,900, up approximately 0.5% on the day, after recovering from weekly lows. Market volatility remained relatively limited as traders assessed the latest inflation data and its potential impact on Federal Reserve policy.
According to the US Bureau of Labor Statistics, the Producer Price Index increased 0.2% month-on-month in July, while the annual increase stood at 4.7%, below the 4.9% expected by economists.
The softer inflation reading supported gains in US stocks. The S&P 500 rose 0.87%, while the tech-heavy Nasdaq Composite gained 0.94% at the time of reporting.
Market expectations for Federal Reserve policy also shifted following the inflation data. The CME FedWatch Tool showed a 65.6% probability of interest rates remaining at 3.50%-3.75% at the Federal Open Market Committee’s September meeting.
However, Federal Reserve officials continue to signal caution over inflation. Cleveland Fed President Beth Hammack questioned whether recent cooling inflation data would be sufficient to bring inflation back to the central bank’s 2% target.
Bitcoin traders are also closely watching key technical and liquidation levels. Glassnode co-founder Rafael Schultze-Kraft highlighted $61,000 as an important downside level, where a significant amount of leveraged long positions could face liquidation.
A move toward that level could trigger forced selling and increase downward pressure on Bitcoin, according to the market analysis.
For now, Bitcoin continues to trade within a relatively narrow range near $64,000, with traders monitoring US economic data, Federal Reserve policy signals and key support levels for the next major price move.
