Bitcoin Holds Near $64K as Stocks Rise on PPI
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- Bitcoin (BTC) traded up roughly 0.5% to around $63,900 after July's US Producer Price Index held flat at 0.2% month-on-month and rose 4.7% year-on-year versus the 4.9% economists had expected.
- Falling gasoline and energy prices delivered the largest downward contribution to the July PPI print, according to Econoday analysts quoted in the BLS release.
- The S&P 500 gained 0.87% and the Nasdaq Composite rose 0.94% at the Wall Street open as the cooler PPI reading reinforced bets the Federal Reserve would pause at its September meeting.
- CME Group's FedWatch Tool priced a 65.6% probability that policymakers hold rates at the current 3.50%-3.75% range at the September FOMC meeting, building on Wednesday's in-line CPI print.
- Cleveland Fed President Beth Hammack — one of three officials who voted for a 0.25% rate hike in July — publicly questioned whether recent cooler data would bring inflation back to the Fed's 2% target even in another three to four years.
- Glassnode co-founder Rafael Schultze-Kraft flagged $61,000 as a flashpoint where built-up long position liquidation risk could trigger forced selling if BTC price reaches that level.
Why it matters: With July PPI coming in below expectations at 4.7% year-on-year and FedWatch now pricing a 65.6% chance of a September pause, the rate-stable backdrop Bitcoin has traded in for weeks is reinforced. The $61,000 long-liquidation cluster flagged by Glassnode is the concrete downside level for leveraged longs if this cooling fails to push BTC past its current ceiling.
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