Bitcoin is showing weakness in the $63,000 range. Although U.S. inflation has cooled, easing concerns about additional interest rate hikes by the Federal Reserve (Fed), investor sentiment in the virtual asset market has been slow to recover.
At 8:45 a.m. on the 13th, according to CoinMarketCap, a global virtual asset market tracking site, Bitcoin was trading at $63,348.58, down 0.37% from 24 hours earlier. Bitcoin briefly rose above $64,000 around 7 p.m. the previous day but fell back into the $63,000 range around 10 p.m.
Most major altcoins are also weak. Ethereum, the No. 2 by market capitalization, is trading at $1,876.42, down 0.33%. BNB is down 0.95% at $609.83, Ripple (XRP) is down 1.79% at $1.00, and Solana is down 0.96% at $75.48.
U.S. inflation has cooled somewhat. According to the U.S. Bureau of Labor Statistics (BLS), the consumer price index (CPI) for July rose 0.1% from the previous month and 3.4% from a year earlier. The year-over-year increase eased by 0.1 percentage point from 3.5% in June. The core CPI, which excludes food and energy, rose 0.2% from the previous month and 2.5% from a year earlier.
As price pressures eased, the likelihood of additional rate hikes by the Fed also decreased. In the market, expectations are strengthening that the Fed will hold its benchmark rate at the Federal Open Market Committee (FOMC) meeting in September. After the CPI release, as assessments grew that the odds of a hike had fallen, Government Bonds yields and the dollar also came under intraday downward pressure.
However, despite the positive inflation data, investor sentiment remains subdued. The fear and greed index compiled by Alternative.me fell 2 points from the previous day to 27, staying in the "fear" zone. A reading closer to 0 indicates investor sentiment is depressed, while a reading closer to 100 indicates the market is overheated.
The market's attention is turning to the U.S. producer price index (PPI) for July, to be released on the 13th local time. If the PPI also confirms a slowdown in inflation, expectations will likely strengthen for the Fed to hold rates in September. Conversely, if the figure comes in higher than expected, renewed inflation concerns could increase volatility in risk assets such as Bitcoin.