Key Points
- Bitcoin [BTC] fails to maintain above $60K despite softer U.S. CPI data, shedding 3% to $58.8K.
- The U.S. government’s $593M BTC move potentially impacts the market, despite being reportedly for custody purposes.
Despite July’s U.S. CPI data being softer than expected, Bitcoin [BTC] was unable to hold above $60K.
The data came in at 2.9% YoY, against the expected 3.0%.
Impact on the Market
The softer inflation data caused a slight relief bounce across the U.S. equities market, including the Nasdaq Composite.
However, BTC, which usually correlates positively with the Nasdaq Composite, moved in the opposite direction.
It lost 3%, falling from $61.8K to $58.8K on August 14.
Despite this, market insiders remained optimistic that the CPI print was bullish for BTC.
Eliezer Ndinga, VP, Head of Strategy and BD at 21Shares, suggested that the softer CPI could lead to a Fed rate cut in September, potentially boosting the crypto markets.
Government BTC Move
In another development, the U.S. government transferred 10K BTC, worth over $590M, to another Coinbase Prime.
Although reported to be for custody purposes, a similar transfer by the U.S. government had previously unsettled the markets and pulled BTC lower.
FundStrat Insights suggested that this action by the U.S. government could have negatively impacted the expected bounce from the softer CPI data.
Despite declining recovery momentum, the Coinbase Premium Index remained positive, indicating some demand for the largest digital asset from U.S. investors.
