By Avery Klein
Bitcoin traded flat below the $64,000 mark on Thursday as market participants digested a U.S. inflation report that matched economists' forecasts but supplied little additional momentum for the cryptocurrency's recovery.
The world's largest digital token last changed hands 0.1% higher at $63,866.2 by 03:09 ET (07:09 GMT). Over recent sessions, Bitcoin has oscillated within a relatively narrow band between roughly $63,000 and $65,000, repeatedly encountering resistance near the upper bound and failing to sustain gains above $65,000.
The latest U.S. consumer price index offered a mixed signal for markets. Headline CPI rose 0.1% in July from June and was up 3.4% on a year-on-year basis, figures that were in line with consensus forecasts. Core CPI, which strips out food and energy, increased 0.2% month-on-month and 2.5% year-on-year - also matching expectations.
Those readings relieved some of the immediate pressure on the Federal Reserve to deliver an additional rate hike at its September meeting. Following the report, market pricing implied a lower chance of a September increase, with traders paring the probability to about 40% from roughly 54% prior to the CPI release, according to CME Group's FedWatch tool.
Despite the reduced odds of near-term policy tightening, the softer inflation print did not spark a broad-based or sustained rally in financial markets. Market participants remain attentive to forthcoming economic data that could either reinforce or reverse the view that the Fed may pause further rate hikes.
The next notable data point for traders is the U.S. producer price report, scheduled for later on Thursday, which could influence interest-rate expectations and market direction.
Non-economic factors also weighed on sentiment. Negotiations between the U.S. and Iran aimed at lowering tensions around the Strait of Hormuz have stalled, with the two capitals presenting competing conditions for reopening the strategically important shipping lane. Those geopolitical frictions continued to act as a drag on risk appetite.
On the policy calendar, attention is also beginning to turn to the Federal Reserve's annual Jackson Hole symposium later this month, where comments from policymakers could offer additional clarity on the longer-term path for interest rates.
Within crypto markets, institutional flows provided a degree of support. U.S. spot Bitcoin exchange-traded funds recorded renewed inflows recently, although those flows remained uneven and have not consistently driven prices higher.
Altcoins traded largely in narrow ranges amid the cautious atmosphere. Ethereum inched up 0.3% to $1,897.22, while XRP declined 0.6% to $1.014. Solana rose 0.2% and Cardano slipped 0.5%. Among meme coins, Dogecoin fell 1.3%.
The current price action reflects a broader loss of momentum for Bitcoin, which continues to test resistance in the $64,000 to $65,000 band. Market participants are now awaiting the next rounds of economic releases and geopolitical developments to provide clearer direction for cryptocurrency markets.