Bitcoin Dips Despite Stocks Rising on Inflation Data

Bitcoin's Decline Amid Stock Market Gains

On Thursday, Bitcoin continued its downward trend, trading just below the $58,000 mark, a decrease of almost 5%. This decline occurred even as stock indices like the Nasdaq and S&P 500 ended Wednesday positively, buoyed by US inflation data that aligned with economists' expectations. Despite trading comfortably above $61,000 prior to the release of the US Consumer Price Index (CPI), which saw July's year-on-year figure increase by 2.9%, Bitcoin faltered. This CPI data marked the first sub-3% rise since 2021, encouraging expectations of a potential rate cut by the Federal Reserve in September. According to the CME FedWatch Tool, traders are now betting on a 62.5% chance of a 25 basis point rate cut at the upcoming Federal Open Market Committee Meeting (FOMC), with a 37.5% chance of a 50 basis point cut.