Key Takeaways
- BTC maintained support around $63,900 following softer-than-expected July US Producer Price Index data
- Year-over-year PPI increased 4.7%, coming in below the anticipated 4.9%, reducing concerns about additional rate hikes
- Fed fund futures now indicate a 65.6% probability of unchanged interest rates at the upcoming September FOMC meeting
- Glassnode’s Rafael Schultze-Kraft identified $61,000 as a critical zone where long positions face liquidation risk
- BTC continues facing resistance in the $64,000–$65,000 price corridor
Bitcoin traded near the $63,900 level on Thursday following a softer-than-anticipated US inflation report that provided modest tailwinds to cryptocurrency markets without triggering significant upward momentum.
July’s Producer Price Index showed no change on a monthly basis, falling short of economist projections calling for a 0.2% increase. Year-over-year, the PPI decelerated to 4.7%, undershooting consensus estimates of 4.9%. The cooling was primarily attributed to declining gasoline and broader energy costs.
Traditional equity markets responded positively to the inflation data. The S&P 500 climbed 0.87% while the Nasdaq Composite advanced 0.94% during opening trading. Bitcoin tracked these gains with a more subdued 0.5% daily increase.
Wednesday’s Consumer Price Index report for July aligned with forecasts, showing headline inflation at 3.4% annually and core CPI registering 2.5%. The combined inflation reports shifted market expectations, with CME FedWatch data now reflecting more than 65% odds that the Federal Reserve will maintain the federal funds rate at 3.50–3.75% when policymakers convene in September.
Central Bank Officials Maintain Measured Tone
Notwithstanding the encouraging inflation figures, Federal Reserve policymakers remained guarded about declaring inflation defeated. During remarks at an Ohio event, Cleveland Fed President Beth Hammack expressed skepticism about whether the current disinflationary trajectory would achieve the central bank’s 2% objective.
“Perhaps we would reach that target, but if the timeline extends another three to four years, is that an acceptable outcome?” Hammack questioned. She was among three officials who dissented in favor of a 0.25% rate increase during July’s policy meeting.
Investor focus is shifting toward the Federal Reserve’s annual Jackson Hole Economic Symposium scheduled for later this month, where central bankers may provide additional clarity regarding the trajectory of monetary policy over the intermediate term.
Critical $61K Level Draws Trader Attention
Barchart highlighted on social media platform X that Bitcoin’s Bollinger Band width contracted to its tightest reading since October 2023, observing that following a comparable technical configuration in October 2023, BTC subsequently surged over 330% through October 2025.
Rafael Schultze-Kraft, co-founder of onchain analytics platform Glassnode, cautioned that the $61,000 price point warrants close monitoring. “Liquidation exposure for long positions has accumulated near $61K over recent weeks. Should price reach that level, I anticipate forced liquidations will amplify downside pressure,” he posted on X.
The leading cryptocurrency continued consolidating within its established $63,000–$65,000 trading corridor. Geopolitical uncertainties, including impasse in US-Iran diplomatic efforts concerning the Strait of Hormuz, contributed to the risk-off sentiment pervading markets.
US-listed spot Bitcoin exchange-traded funds have experienced a resurgence in capital inflows lately, although the pattern of flows has demonstrated considerable volatility.
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