Bitcoin (BTC) Falls to Below $58K After U.S. CPI Data

The latest price moves in crypto markets in context for Aug. 15, 2024.

Major cryptocurrencies dropped on Thursday after U.S. consumer price index (CPI) data for July was released, showing a smaller-than-expected increase. The CPI rose by 2.9% year-on-year, marking the first time it has increased by less than 3% since 2021. The data caused a sell-off in equities and cryptocurrencies, with bitcoin dropping below the key $58,000 level.

Bitcoin dropped by over 4.5% in the last 24 hours, trading at $58,764 at press time. BTC losses led drops across major tokens, with ETH also down over 4.5% and SOL falling just under 4%. The broad-based CoinDesk 20, a liquid index tracking the largest tokens by capitalization, lost 3.5%.

Some traders expect bitcoin to drop as low as $55,000 in the near term, which could spell further losses for other major tokens. Crypto prices have been "highly sensitive" to U.S. economic data in recent months as investors prefer stability over riskier assets, according to K33 Research. “A new sell-off momentum is still the prevailing scenario, with a potential pullback to $55K,” Alex Kuptsikevich, FxPro senior market analyst, said in a Thursday note. “Data supporting the Fed's imminent easing of monetary policy may encourage the bulls to overcome the short-term downtrend and give the green light to rise to $66K.”

U.S.-listed spot bitcoin ETFs recorded $81 million in net outflows on Wednesday, ending a two-day positive streak. Grayscale’s GBTC registered $56 million in outflows, the most among counterparts, with Fidelity’s FBTC recording $18 million in outflows. Ark Invest’s ARKB and Bitwise’s BITB lost $6.7 million and $5.7 million respectively. Franklin Templeton’s EZBC and BlackRock’s IBIT were the only products with net inflows, adding a cumulative $6 million.

Ether ETFs, on the other hand, fared better, recording $10 million in net inflows, extending a streak to three days. BlackRock’s ETHA recorded $16 million in inflows, while Grayscale’s ETHE lost $16 million. Grayscale’s mini Ether trust ETH, Fidelity’s FETH and Bitwise’s ETHW took on a cumulative $11 million inflows.