Bitcoin keeps traders guessing near $64K as stocks gain on cool US PPI data
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- Bitcoin rose around 0.5% to $63,900 following the release of July’s Producer Price Index, which showed a month-on-month increase of 0.2% and a year-on-year rise of 4.7%, below the expected 4.9%.
- US stocks gained at the open with the S&P 500 and Nasdaq Composite up 0.87% and 0.94%, respectively, as cooling inflation data reduced market expectations for a September Fed rate hike.
- Cleveland Fed President Beth Hammack maintained a hawkish stance, questioning whether recent disinflation trends are sufficient to reach the Fed’s 2% target within an acceptable timeframe.
- CME Group’s FedWatch Tool indicated 65.6% odds that the Federal Open Market Committee will hold rates steady at the September meeting, up from prior uncertainty after July’s split decision.
- Rafael Schultze-Kraft warned that long liquidation risks have accumulated around $61,000, with a drop to that level likely triggering forced selling and accelerating downside momentum.
Why it matters: Traders are pricing in a higher probability of a Fed pause, supporting equities and crypto, but Bitcoin’s narrow trading range masks growing vulnerability—$61,000 holds a cluster of long positions whose liquidation could shift sentiment fast, creating outsized risk for leveraged holders despite macro tailwinds.
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