Higher-than-expected inflation could delay Fed rate cuts and strengthen the dollar, both headwinds for crypto. Lower inflation raises hopes for September cuts and a weaker dollar, supporting risk assets like Bitcoin.
Bitcoin's key support: $63,750. Resistance above: $64,500. A break above $64,500 suggests buyers have returned; a slip below $63,750 opens the door to $62,500 and deeper losses.
Bitcoin ETFs absorbed $853.54 million in the week ending August 7, with BlackRock's IBIT capturing the lion's share. This suggests institutional buyers are averaging in despite near-term caution.
Expect sharp moves Wednesday morning at 8:30 AM ET when CPI drops. Plan your position sizing for large swings and avoid emotional decisions until the market digests the data.
Watch for Bitcoin to hold $63K and reclaim $64.5K as a signal institutional demand is intact. A break below $63K signals a deeper correction and opens the path to $62K.
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