bullish

Bitcoin

Impact

<h2 id="key-points">Key Points</h2> 
<ul> 
 <li>Bitcoin [BTC] fails to maintain above $60K despite softer U.S. CPI data, shedding 3% to $58.8K.</li> 
 <li>The U.S. government’s $593M BTC move potentially impacts the market, despite being reportedly for custody purposes.</li> 
</ul>  
<p>Despite July’s U.S. CPI data being softer than expected, <a href="https://coineagle.com/price/bitcoin/">Bitcoin</a> [BTC] was unable to hold above $60K.</p> 
<p>The data came in at 2.9% YoY, against the expected 3.0%.</p> 
<h2 id="impact-on-the-market">Impact on the Market</h2> 
<p>The softer inflation data caused a slight relief bounce across the U.S. equities market, including the Nasdaq Composite.</p> 
<p>However, BTC, which usually correlates positively with the Nasdaq Composite, moved in the opposite direction.</p> 
<p>It lost 3%, falling from $61.8K to $58.8K on August 14.</p> 
<p>Despite this, market insiders remained optimistic that the CPI print was bullish for BTC.</p> 
<p>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.</p> 
<h2 id="government-btc-move">Government BTC Move</h2> 
<p>In another development, the U.S. government transferred 10K BTC, worth over $590M, to another <a href="https://coineagle.com/exchange/gdax/">Coinbase</a> Prime.</p> 
<p>Although reported to be for custody purposes, a similar transfer by the U.S. government had previously unsettled the markets and pulled BTC lower.</p> 
<p>FundStrat Insights suggested that this action by the U.S. government could have negatively impacted the expected bounce from the softer CPI data.</p> 
<p>Despite declining recovery momentum, the Coinbase Premium Index remained positive, indicating some demand for the largest digital asset from U.S. investors.</p>

Understanding the Dip in Bitcoin’s Price Despite Favorable July CPI Reports

Table of Contents

CoinEagle.com

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