Bitcoin held steady below $64,000 on Thursday as investors assessed a U.S. inflation report that came in line with expectations, easing concerns about a near-term interest rate hike by the U.S. Federal Reserve, but not enough to give the cryptocurrency enough impetus to continue its recovery.
Bitcoin's last recorded price was $63,866.20, up 0.1%.
Bitcoin remained mostly confined to the $63,000 to $65,000 range, and failed to regain momentum above the $65,000 level.
Traders assess the Fed's outlook following US inflation data.
U.S. consumer prices rose 0.1% in July compared to June, and 3.4% year-on-year, in line with economists' expectations. The core consumer price index, which excludes food and energy, also rose 0.2% month-on-month and 2.5% year-on-year, similarly matching forecasts.
This data eased the pressure on the US Federal Reserve to raise interest rates at its September meeting.
Traders have lowered the probability of an interest rate hike in September to about 40%, compared to 54% before the report was released, according to the Chicago Mercantile Exchange Group's FedWatch tool.
However, the more moderate inflation reading was not enough to spark a sustained rally in financial markets. Investors are still watching to see if upcoming economic data will reinforce expectations that the Federal Reserve will refrain from further monetary tightening.
The next big test will be the US producer price report, due later on Thursday.
Geopolitical risks also remained a deterrent, as US-Iranian negotiations aimed at easing tensions over the Strait of Hormuz stalled, with Tehran and Washington holding to competing conditions for reopening this vital waterway.
Bitcoin’s recent price action also reflects a broader decline in momentum, as the currency remains below the important resistance level between $64,000 and $65,000.
Attention is gradually shifting toward the Federal Reserve’s annual Jackson Hole symposium, due later this month, where monetary policymakers may offer clues about the long-term path of interest rates.
Despite the prevailing caution in the near term, institutional demand has provided some support, with US Bitcoin spot exchange-traded funds (ETFs) recording renewed inflows recently, albeit irregular.
Cryptocurrency prices today: Altcoins are mixed and moving within a narrow range
Most alternative currencies traded in narrow ranges on Thursday amid a cautious mood.
Ethereum, the world's second-largest cryptocurrency, rose 0.3% to $1,897.22.
XRP, the third largest cryptocurrency, fell 0.6% to $1.01.
Solana rose by 0.2%, while Cardano fell by 0.5%.
Regarding meme coins, Dogecoin fell by 1.3%.
