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Bitcoin Traders Eye CPI, Fed for Next Move

Bitcoin drops 2.4% to $63,700 amid summer illiquidity as traders eye CPI and ETF flows

  • Bitcoin fell 2.4% to roughly $63,700, trading in a narrow range between $64k and $67k.
  • Analysts cite a lack of catalysts, summer illiquidity, and low volatility as key factors suppressing moves.
  • According to Coinbase data from TradingView, attention is now on Wednesday’s CPI print and institutional ETF flows.

Bitcoin dropped 2.4% to roughly $63,700 on Monday, trading within a narrow range as traders focused on macro factors for direction. Coinbase data from TradingView shows the world’s largest digital currency by market value fell from $65,341.83.

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Jeff Anderson, managing director at STS Digital, described the market as rangebound between $64k and $67k. “Conviction is thin on both sides as summer illiquidity reigns supreme with attention focused on AI,” he said via email. He noted volatility has compressed to its 1st percentile while the market waits on unresolved catalysts.

A decisive break of either level should see volatility expand quickly, according to Anderson. The closely watched CPI print on Wednesday will be a key indicator, as soft inflation data has historically eased rate-hike fears and supported risk assets. “The recent weak jobs report already provided a mild tailwind,” he stated in emailed commentary.

Paul Howard, senior director at crypto trading firm Wincent, noted Bitcoin’s price action has been driven by steady ETF inflows. “Those inflows are being offset by OTC selling from miners and Strategy,” he said through emailed commentary. He expects consolidation to persist for three to four weeks until there is clarity on the CLARITY Act.

Howard believes that will be the next meaningful catalyst for volatility. “Positioning across derivatives markets suggests investors remain well hedged,” he concluded. Any significant move outside the current range would be a surprise without a material fundamental catalyst.

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