Live: Bitcoin Stays Near $64K as July Inflation Matches Expectations

Bitcoin Holds $64K as July Inflation Meets Expectations

Blockchain records indicate that Japanese Bitcoin treasury company Metaplanet transferred BTC between wallets under its own control rather than sending the coins to an exchange. Despite the move and the company’s estimated $1.4 billion unrealized loss, the transaction does not appear to represent a Bitcoin sale.

July Inflation Matches Forecasts as Bitcoin Stays Near $64K

U.S. inflation came in broadly in line with expectations in July. Headline CPI increased 0.1% month over month and 3.4% from a year earlier, while core CPI rose 0.2% monthly and 2.5% annually.

Bitcoin remained around $64,000 following the data, while Nasdaq futures moved higher and U.S. Treasury yields declined.

Markets priced in a 44% probability of the Federal Reserve raising interest rates in September, down from expectations before the inflation report and following weaker employment figures.

Dollar Index Tests Key Support

The U.S. Dollar Index is currently testing support at a bullish trendline that has supported its advance from the January low of 95.55.

A rebound from this level could signal that the dollar’s broader rally remains intact, while a clear move below the trendline could indicate a potential trend reversal.

The direction of the dollar could depend heavily on U.S. inflation data. A stronger-than-expected core CPI reading, which removes volatile food and energy components, could trigger a significant recovery in the greenback.

Gold and Silver Gain Ahead of Inflation Data

Precious metals advanced ahead of the July CPI release. Gold climbed above $4,420, gaining more than 1% over 24 hours and roughly 7% during the month.

Silver also moved above $66, rising more than 2.5% over the previous day and approximately 12% for the month.

Bitcoin likewise moved above $64,000, although its 24-hour gain remained below 1%.

Fed Decision Remains Highly Uncertain

Market sentiment remained cautious ahead of the U.S. inflation report, with geopolitical concerns continuing to weigh on investor confidence.

Kyle Rodda, senior analyst at Capital.com, said expectations for the Fed’s September decision were roughly split, with recent FOMC communication providing mixed signals.

Core inflation was expected to ease to 2.5% in July, while headline inflation was also forecast to moderate. A stronger core reading or persistent price pressure in components that influence the Fed’s preferred PCE inflation measure could increase expectations for a rate hike and pressure equities.

Conversely, softer inflation would likely reduce those expectations, particularly after last week’s weaker-than-expected employment report.

AI Earnings Boost Stock Futures Ahead of CPI

U.S. stock futures climbed Wednesday as strong results from AI-related companies improved market sentiment ahead of the inflation release.

CoreWeave jumped 16% in after-hours trading following strong demand for AI computing, while Super Micro gained 7.6% after issuing a revenue outlook above even the highest analyst estimates.

The gains pushed Nasdaq 100 futures up about 0.3%. South Korea’s Kospi also rallied 4%, with Samsung and SK Hynix each advancing roughly 6%.

The key event for markets was the July CPI release, which was expected to show annual headline inflation easing to 3.4% from 3.5%.

The report represented the first major inflation reading since a weak jobs report reduced expectations for a September rate hike to around 36%. A softer CPI reading could further strengthen the case for the Federal Reserve to keep rates unchanged.

Metaplanet Transfers 3,881 BTC Between Its Own Wallets

Metaplanet transferred 3,881 BTC worth approximately $247 million across several transactions over a three-hour period on Wednesday, according to Arkham data.

The Bitcoin moved from the company’s cold-storage wallets to newly created addresses that are also controlled by Metaplanet. The coins were not transferred to a cryptocurrency exchange.

Moving Bitcoin into new self-custody wallets does not typically increase immediately available selling supply in the same way that sending funds to an exchange can. As a result, the transactions alone do not indicate that Metaplanet was selling its holdings.

The company has carried out similar wallet movements previously. In March, Metaplanet shifted nearly 5,000 BTC through a comparable series of test transactions followed by larger transfers into new addresses. Analysts interpreted those movements as internal custody management rather than distribution.

Wednesday’s blockchain activity likewise shows no clear evidence of a change in that pattern.

Metaplanet accumulated its approximately 43,000 BTC at an average price near $96,000. With Bitcoin trading around $63,600, the company’s holdings represent an estimated unrealized loss of roughly $1.4 billion, or about 34%.

The Japanese firm has emerged as one of the most aggressive corporate Bitcoin buyers since April 2024 and has set a long-term target of holding 210,000 BTC.

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