Bitcoin Bulls Lose Grip After BTC Hits $63,808 as Fed Rate Bets Shift Again
After briefly crossing $65,000 following positive U. S. producer price index data, bitcoin fell back to around $64,200, dragging its market cap back under $1. 3 trillion. Key TakeawaysBitcoin dropped 1% on. . .
After briefly crossing $65,000 following positive U. S. producer price index data, bitcoin fell back to around $64,200, dragging its market cap back under $1. 3 trillion. Key TakeawaysBitcoin dropped 1% on Thursday, retreating under its $1. 3 trillion market cap after failing to hold $65,000. Fed policy and geopolitical risks have forced crypto to trade closely with the macro liquidity cycle. Global Settlement CEO Ryan Kirkley warns traders not to expect a straight line to easier monetary policy. Volatile Intraday TradingOn Thursday,bitcoinfailed to maintain an uptrend that had seen it log significant gains in the prior 48 hours. Market data shows thecryptocurrencygradually retreated from the $65,000 threshold it had surpassed following the release of the U. S. producer price index on July 15. The descent initially halted afterbitcoindropped to just over $64,400. A subsequent push toward $65,000 stalled near $64,900 around 1:30 a. m. EST, triggering a sharp drop to $63,900 before a brief reliefrally nudged the priceback above $64,000. By 8:44 a. m. ,bitcoinplunged to a daily low of $63,808, though a swift rebound soon lifted it back past $64,700. At the time of writing (1:13 p. m. EST),bitcoinwas trading at slightly over $64,200, representing a 1% daily loss. This retreat dragged thecryptocurrency’s market capitalization back below the $1. 3 trillion mark. While the release of U. S. inflationdata on Tuesday and Wednesday lifted global markets, a lack of subsequent positive headlines and continuing hostilities in the Middle East demonstrated how investors may have moved too quickly to price in an easier policy path, while overlooking the structural changes reshaping financial markets. According to Ryan Kirkley, co-founder and CEO of Global Settlement, the Juneconsumer price index (CPI) printmight have bought the Federal Reserve time but did not end theinflationfight. “The Fed has been handed time, not an exit. The case for an immediate rate hike has weakened, but theinflationfight is not over. Anyone pricing a straight line from this CPI report to easier policy is ignoring the geopolitical risk already building beneath the data,” Kirkley said. The Crypto-Macro Liquidity LinkTurning tobitcoinspecifically, Kirkley argued the asset’s reaction was predictable, noting it responded as traders dialled back expectations for a near-term rate hike. In his view, “that is notbitcoinseparating from traditional finance. It confirms how closelycryptonow trades with the macroliquiditycycle. ”Wheninflationcools and rate expectations fall, financial conditions loosen, prompting investors to increase risk exposure. Cryptooften reacts quickly because it trades continuously, carries significantleverage, and allows capital to move in and out without waiting for traditional market hours. “The same dynamic works in reverse. When yields rise or the dollar strengthens, leveraged positions unwind andcryptofalls faster than more defensive assets,” Kirkley said in a statement shared withBitcoin. comNews. Institutional participation has reinforced this relationship, as digital assets now respond to the same CPI releases, Treasury moves, oil shocks, and central bank signals as equities and currencies. While institutional capital has brought greater legitimacy, it has also tiedcryptomore closely to the traditional financial cycle. “Cryptois no longer operating on a separate set of rules. It trades with globalliquidity, and pretending otherwise does not change that,” Kirkley said. Fueled by positive economic data, bitcoin added to its July 14 gains on Wednesday to breach $65,000, hitting an intraday…Bitcoin Tops $65,500 as $209 Million in Crypto Shorts Collapse Across MarketsFueled by positive economic data, bitcoin added to its July 14 gains on Wednesday to breach $65,000, hitting an intraday…Fueled by positive economic data, bitcoin added to its July 14 gains on Wednesday to breach $65,000, hitting an intraday…