Hassan Maishera
TL;DR
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Bitcoin fell toward $63,500 on Thursday, extending its weekly decline to almost 2%.
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July’s US inflation figures matched expectations, reducing fears of an immediate rate increase but failing to provide a strong market catalyst.
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Hyperliquid’s HYPE outperformed the wider crypto market, rising more than 3% to $56.
Bitcoin (BTC) slipped toward $63,500 on Thursday as an in-line US inflation report eased some monetary-policy concerns but failed to generate enough momentum for a sustained cryptocurrency rally.
BTC declined more than 0.5% during the day and was down almost 2% over the previous seven days. Most leading altcoins also traded lower, reflecting continued caution across the digital-asset market.
HYPE Outperforms as Major Altcoins Retreat
Hyperliquid (HYPE) emerged as the strongest performer among major cryptocurrencies, advancing more than 3% to $56. Despite the daily increase, the token remained broadly unchanged over the week.
Tron (TRX) posted a modest gain to trade just below $0.34, bringing its seven-day increase to approximately 2%.
Elsewhere, the market remained under pressure. Dogecoin (DOGE) dropped almost 3% to $0.07, while XRP declined more than 1% to $1.00. XRP was among the weakest weekly performers, falling nearly 5% over seven days.
BNB lost more than 1% to trade around $610, Solana (SOL) slipped below $76, and Ether (ETH) edged lower to approximately $1,880.
US Inflation Matches Market Expectations
July’s US Consumer Price Index data arrived largely in line with economists’ forecasts.
Headline inflation increased 0.1% month over month and 3.4% annually. Core inflation, which excludes volatile food and energy prices, rose 0.2% on the month while easing to an annual rate of 2.5%.
The figures reduced the perceived likelihood of another Federal Reserve interest-rate increase in September. Futures markets lowered the probability of a rate hike to approximately 38%, down from 46% before the report’s release.
Markets initially reacted positively. Gold rose 1.3%, ETH gained just over 1%, BTC climbed approximately 0.5%, and S&P 500 futures advanced 0.2%. However, the cryptocurrency gains proved short-lived.
CF Benchmarks Head of Research Gabe Selby said Bitcoin tends to produce its strongest reactions when inflation data forces investors to reassess the interest-rate outlook.
Across the past nine inflation releases, Bitcoin gained an average of 3.25% on the three occasions when the figures came in below expectations. A downside inflation surprise on July 14, for example, was followed by a 4.24% BTC rally.
An in-line report may eliminate the risk of an unexpectedly high reading, but it does not necessarily provide the catalyst needed to drive prices significantly higher.
The report also contained details that could allow the Fed to remain patient. Shelter costs rose by only 0.1%, while energy prices declined 1.5% and gasoline fell 2.9%. Some goods categories are also beginning to move beyond the tariff-related price increases recorded during the previous year.
Jackson Hole and September Data Become the Next Catalysts
With the latest inflation report failing to deliver a decisive market signal, investors will turn their attention to several upcoming events.
The Federal Reserve’s Jackson Hole gathering later in August could provide more clarity on policymakers’ economic outlook and the future direction of interest rates.
The US employment report scheduled for September 4 will offer another assessment of labor-market strength. That will be followed by the next inflation release on September 11.
Unexpected weakness in employment or inflation could improve expectations for looser monetary policy and provide support for risk-sensitive assets such as Bitcoin.
With inflation meeting expectations and geopolitical risks remaining elevated, Bitcoin may need a clearer macroeconomic catalyst before making its next significant move.
