Bitcoin Slips Below $64K as Traders Lock In CPI Gains

Bitcoin (BTC) pulled back on Thursday, falling below $64,000 after a brief rally triggered by cooler U.S. inflation data. The flagship cryptocurrency dropped nearly 3.5% in the past 24 hours, with traders appearing to lock in profits after the previous day’s surge. The retreat comes as global risk assets pause to reassess the market’s next moves amid rising speculation of a potential U.S. rate cut in September.

The initial boost from June’s CPI report, which showed inflation slowing to 2.6%, had pushed Bitcoin to a six-week high of around $65,400. However, analysts say the momentum may have been overstretched in the short term. Traders reacted to overbought technical indicators and began rotating out of BTC into altcoins and fiat hedges.

Despite the dip, sentiment among long-term holders remains firm. On-chain data shows wallets holding more than 10 BTC have continued to accumulate, suggesting that larger players are treating the pullback as temporary. Meanwhile, derivatives markets flashed signs of cooling, with open interest on BTC futures contracts falling by 6% across major platforms including Binance and Bybit.

Market volatility also increased as traders parsed comments from several Federal Reserve officials. While the CPI report has shifted expectations toward a September rate cut, Fed Governor Lisa Cook warned that one month’s data may not be enough to change the overall trajectory. Her remarks weighed slightly on crypto and equity markets, reinforcing the possibility of more choppy trading ahead.

Altcoins saw mixed performance as capital flowed out of Bitcoin. Ethereum slipped 1.8% to trade around $3,480, while Solana held steady after yesterday’s Firedancer upgrade rally. Some traders rotated into meme coins and Layer-2 tokens, anticipating stronger near-term gains in smaller-cap projects.

The decline in BTC also coincided with a stronger U.S. dollar rebound. The dollar index (DXY) recovered slightly from its dip below 100, gaining 0.3% in intraday trading. This minor USD bounce added pressure to BTC/USD pairs, particularly in the European and Asian trading sessions.

Analysts remain divided on where Bitcoin heads next. Some believe the pullback was necessary to reset momentum and that a retest of $66,000 is still likely in July. Others caution that macro uncertainty could lead to further downside unless new catalysts emerge. For now, Bitcoin remains within a wide range, and traders are watching closely for signs of fresh accumulation or institutional inflows before placing their next bets.