Bitcoin held its ground around the $63,000 level on Thursday, trading near $63,400 as traders digested the latest US inflation print that showed consumer prices cooling in July. Ethereum, meanwhile, hovered just below $1,900, keeping the broader crypto market in a tight consolidation phase as investors wait for clearer signals on monetary policy.
The macro backdrop shifted notably this week. US headline CPI eased to 3.4% year-over-year in July from 3.5% in June, matching market expectations, while core inflation remained subdued. That came on the heels of a surprisingly weak July jobs report that showed only 23,000 new nonfarm payrolls versus the 80,000 expected, with May and June figures also revised down by a combined 103,000. Together, the data have pushed market pricing for a September rate cut back up to roughly 48%.
For risk assets like crypto, the prospect of cheaper liquidity is broadly supportive. Lower interest rates typically reduce the opportunity cost of holding non-yielding assets such as Bitcoin and can attract fresh institutional flows. Indeed, Bitcoin exchange-traded funds have posted their strongest inflows since April in recent sessions, a sign that longer-term allocators are stepping in even as spot prices remain rangebound.
On the regulatory front, sentiment has also been improving. A gradually clarifying US framework has encouraged more traditional financial institutions to engage with digital assets, while steady technical upgrades within the Ethereum ecosystem continue to build a foundation for future upside. Yet near-term, crypto remains tied to overall risk appetite and shows a tight correlation with tech-heavy equities.
On the charts, Bitcoin is compressing within a $62,000-$65,000 range. The $62,000 zone provides solid support, while $65,000 stands as the immediate resistance that bulls need to reclaim to open the door to further gains. A breakdown below $62,000, on the other hand, would raise the risk of deeper correction. With the Jackson Hole symposium approaching later this month, traders are likely to stay cautious, watching both macro data and ETF flows before committing to a directional bet.