Bitcoin dropped below $64,000 on Wednesday after the U.S. Bureau of Labor Statistics released Consumer Price Index (CPI) data that matched market expectations. Analysts interpreted the in-line CPI reading as a lack of significant catalyst for either hawkish or dovish policy moves by the Federal Reserve.
Ryan Lee, Chief Analyst at Bitget Research, commented, “An in-line CPI reading neither forces a hawkish re-pricing nor delivers a clear dovish catalyst.” Iggy Ioppe, Chief Investment Officer at Theo, added, “An in-line CPI print preserves current September expectations and shifts focus to the Jackson Hole symposium and the next inflation numbers, which remains constructive for risk assets over the medium term.”
Daniela Sabin Hathorn, Senior Market Analyst at Capital.com, noted, “The CPI print is a helpful report rather than an all-clear. The Fed is unlikely to declare victory given inflation at 3.4%, leaving September odds at 60/40 in favor of no move over a quarter-point hike.” Andrei Grachev, Managing Partner at DWF Labs, observed that the options market charged a material premium for protection on the CPI print, with downside strikes near $60,000 costing more than equivalent upside strikes near $70,000.
Written by Kate Hollinsworth
Economics Desk
