BTC price action returned to $64,000 on low US CPI inflation but traders stayed wary of rejection at key resistance.
Bitcoin (BTC) spiked past $64,000 into Tuesday’s Wall Street open as US inflation saw a surprise sudden downturn.
Data from TradingView showed BTC/USD gaining more than 2% on the day as the June print of the Consumer Price Index (CPI) came in below expectations.
BTC/USD one-hour chart. Source: Cointelegraph/TradingView
At 3.5% versus the anticipated 3.8%, CPI posted its largest monthly decline since April 2020, per data from US Bureau of Labor Statistics (BLS). Energy led the drop despite headwinds from the US-Iran war and the closure of the Strait of Hormuz oil route.
“The index for energy fell 5.7 percent in June after rising 3.9 percent in May, 3.8 percent in April, and 10.9 percent in March,” an official news release stated.
Risk assets reacted positively, with US stocks in the green and crypto showing particular relief.
Market expectations of future Federal Reserve financial policy changes also turned dovish, with the odds of interest-rate hikes dropping sharply. The latest data from CME Group’s FedWatch Tool nonetheless maintained consensus for a 0.25% hike at the Fed’s September meeting.
Fed target rate probabilities (screenshot). Source: CME Group
“This print should help temper what had become an excessively hawkish market tilt to the monetary policy outlook,” economist Mohamed El-Erian wrote in a response on X.
Bitcoin traders remained cautious with local resistance above $64,000 still in place.
Related: Bitcoin bear market will bottom when two-month RSI metric hits zero, trader predicts
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