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Bitcoin at $64,000: Iran hopes fading, CPI awaited
Сryptocurrency
Bitcoin remained largely in the $60,000-$65,000 trading range amid a lack of direct positive signals for crypto markets.
Bitcoin traded sideways on Wednesday amid fading optimism over the US-Iran deal to reopen the Strait of Hormuz, while caution ahead of key inflation data releases also curbed cryptocurrency gains.
The world's largest cryptocurrency fell 0.3% to $64,110.1 by 9:20 AM.
Recent reports of additional coin sales from Strategy, the largest corporate holder of Bitcoin, also put pressure on the cryptocurrency.
Fading Hormuz Hopes Weigh on Risk Appetite
The appetite for speculative, high-risk investments was dampened by fading confidence that the US and Iran were nearing a deal to reopen Hormuz.
Shipping through this key waterway remained negligible, despite repeated US statements that it remained open and that negotiations with Iran were ongoing.
Tehran denied holding any talks with Washington and demanded the US agree to its reparations demands before any agreement on Hormuz could be reached.
Oil prices soared to nearly two-week highs on Wednesday, while additional clashes between the Houthis and Saudi Arabia in the Red Sea heightened concerns about global supply constraints. Higher oil prices, in turn, have fueled fears of persistent inflation, which could, in turn, push major global central banks to tighten monetary policy.
This scenario is unfavorable for speculative assets like Bitcoin, given their heavy reliance on lower interest rates and high liquidity conditions.
Cryptocurrency Prices Today: Altcoins Flat, July CPI Ahead for Rate Signals
Broader cryptocurrency prices showed little change, with attention shifting fully to the upcoming US Consumer Price Index (CPI) inflation data for additional interest rate signals.
The release is expected later on Wednesday and is expected to show a slight slowdown in inflation compared to the previous month.
However, any exceedances of market consensus are likely to heighten concerns about persistent inflation and higher interest rates—a scenario that portends short-term losses for cryptocurrencies. The world's second-largest cryptocurrency, Ethereum, rose 1.1% to $1,905.38, while XRP gained 1.7% to $1,0238.
Solana rose 1.2%, while Cardano fell about 1%. BNB gained 1.1%.
Among memecoins, Dogecoin rose 2%, while $TRUMP fell 1.6%.