Bitcoin jumps on lowest US CPI since 2020 as traders stay wary of $64K failure
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- Bitcoin spiked past $64,000, gaining more than 2% on the day as June US CPI came in at 3.5%, below the 3.8% consensus expectation per TradingView and BLS data.
- The CPI print marked the largest monthly decline since April 2020, with the energy index falling 5.7% as the primary contributor despite headwinds from the US-Iran war and the closure of the Strait of Hormuz oil route.
- CME Group's FedWatch Tool showed odds of rate hikes dropping sharply post-print, though it maintained consensus for a 0.25% hike at the Fed's September meeting.
- Economist Mohamed El-Erian wrote that the data should "temper what had become an excessively hawkish market tilt to the monetary policy outlook."
- Traders flagged continued local resistance above $64,000, with 24-hour crypto short liquidations hitting just over $220 million per CoinGlass as short positions were squeezed by passive demand.
- Trader Killa warned that failure to reclaim and hold the weekly open could set up a move down to the $60K region, calling any current push "likely just a lower high."
Why it matters: Bitcoin's 2%+ rally triggered $220M in short liquidations as a surprise dovish CPI reset Fed hike expectations, but with $64K resistance holding and CME still pricing a September hike, the relief rally's durability hinges on the next FOMC meeting.
