On Thursday, Bitcoin maintained a narrow range around the $64,000 mark despite weak inflation readings from July’s Consumer Price Index (CPI). The Producer Price Index (PPI) for final demand remained unchanged, with services increasing by 0.2% and goods decreasing by 0.7%. Prices rose by 4.7% year-over-year, according to preliminary figures.
Initial jobless claims surged to 209,000 for the week ending August 8, exceeding market expectations of 202,000. Analysts at Glassnode noted a lackluster reaction to positive economic data in Thursday’s markets. Meanwhile, Simon-Peter Massabni, Head of Business Development at XS.com, suggested that Bitcoin’s price is just above its Median Realized Price at $63,000.
Martin Gaspar, Senior Crypto Market Strategist at FalconX, highlighted the thin liquidity conditions, which have reached their lowest level since early 2019. Matt Mena, a Senior Crypto Research Strategist at 21shares, added that despite positive economic indicators, there has been little to no meaningful buying interest on Thursday.
Glassnode’s analysts attributed this muted market reaction to various factors, including the recent inflation data and liquidity constraints. The firm’s analysis emphasizes how such economic signals can influence investor sentiment in volatile markets like cryptocurrencies.
Written by Oliver Grant
Markets Desk
