Bitcoin stays below $64K despite softer inflation and crypto banking boost
Market slipped to $2.16T despite the positive setup, and BTC is non-reactive as well.
There’s a new U.S. inflation reading, and the doors are now open for crypto firms to operate within the banking system. Together, they give traders plenty to keep an eye out for.
U.S. inflation at 3.4% in July
U.S. inflation was subdued in July; price pressures are perhaps moving in the right direction.
The annual CPI rate came in at 3.4%, matching market expectations; that’s down from the 3.5% in June. On a monthly basis, prices rose 0.1%, after falling 0.4% in June.
The important part is that inflation did not surprise to the upside. There’s not a lot of pressure on the Fed to stay more aggressive.
For Bitcoin and other risk assets, inflation is generally more supportive.
OCC opens the door for crypto firms
In addition, the industry also got a regulatory boost.
The Office of the Comptroller of the Currency [OCC] said firms involved in legally permitted digital-asset activities should have a pathway to apply for a national bank charter. Simply put, eligible crypto companies could be part of the same federal banking framework used by traditional institutions.
America and the OCC are once again open for business.
Still, not every crypto firm can suddenly become a bank. Applications would still need to meet regulatory requirements.
However, the message stands.
Does the crypto market care?
So far, doesn’t seem like it.
Bitcoin briefly pushed above $64K, but gave back those gains and was trading near $63,400 around three hours after the release. The RSI had slipped to about 40, while CMF was near zero.
The overall market also fell after the release. Crypto market cap dropped, before recovering to $2.16 trillion. Seems like inflation data was not a strong enough reason to buy crypto right away.
That does not make the inflation or OCC developments negative. For now, traders are taking the news in stride rather than rushing in.
Final Summary
- U.S. inflation adjusted to 3.4% in July, but Bitcoin failed to hold above $64K after the release.
- The OCC opened a path for eligible crypto firms to seek national bank charters.
