Bitcoin keeps traders guessing near $64K as stocks gain on cool US PPI data

Bitcoin and US stocks both experienced slight gains on Thursday, following a recent cooling trend in inflation data. The US Producer Price Index (PPI) showed a narrow decline in July, with the index remaining unchanged month-over-month at 0.2% and year-over-year rising 4.7%. Analysts noted that falling energy prices, particularly in gasoline, helped alleviate some of the pressure.

BTC/USD traded around 0.5% higher near $63,900, with minimal volatility reported by TradingView. The one-hour chart shows BTC/USD's price action within a tight range. CME Group's FedWatch Tool indicated a 65.6% probability that Federal Reserve policymakers would maintain current interest rates between 3.50% and 3.75% during the September meeting.

Fed officials maintained a cautious stance on policy, with Federal Reserve Bank President Beth Hammack expressing doubts about whether the recent inflation data would be sufficient to bring the Fed's 2% target within reach. Hammack questioned whether it might take "another three to four years" for inflation to decline to the desired level. This sentiment was echoed by other officials who voted in favor of a 0.25% rate hike in July.

Speculators are cautious, with Glassnode's Rafael Schultze-Kraft suggesting that Bitcoin could hit a significant support level of $61,000. If BTC were to reach this price point, large potential long position liquidations could add momentum to the price decline. Additionally, $63,000 has also emerged as another key support level, with repeated tests increasing the odds of support failure.