Bitcoin Holds $64K as July CPI Aligns With Expectations
Blockchain data indicates that Japanese Bitcoin treasury company Metaplanet transferred its Bitcoin holdings between wallets under its own control rather than moving the coins to an exchange. The transaction does not appear to be a sale, even though the company is carrying an estimated $1.4 billion unrealized loss on its BTC position.
U.S. Inflation Matches July Forecasts
The latest U.S. inflation figures came broadly in line with expectations. Headline CPI increased 0.1% month over month and 3.4% compared with a year earlier.
Core CPI, which excludes food and energy, rose 0.2% from June and was up 2.5% annually.
Bitcoin remained around $64,000 following the release, while Nasdaq futures moved higher and Treasury yields declined.
Markets were assigning a 44% probability to a Federal Reserve rate hike in September. That estimate was lower than before the inflation report and reflected concerns raised by recent weakness in the U.S. labor market.
Dollar Faces Key Technical Test
The U.S. Dollar Index is currently testing support along a bullish trendline that has helped drive its recovery from the January low of 95.55.
If the index rebounds from this area, the move could reinforce the dollar’s broader uptrend. A sustained break below the trendline, however, could signal that the rally is weakening and a reversal may be underway.
The inflation figures were expected to play an important role in determining the dollar’s next direction. A stronger-than-expected core CPI reading could have provided fresh support for the greenback.
Gold and Silver Rally Before CPI
Precious metals continued to gain ahead of the inflation release.
Gold traded around $4,420, rising more than 1% over the previous 24 hours and about 7% for the month. Silver moved above $66, posting gains of more than 2.5% over the previous day and approximately 12% during the month.
Bitcoin also climbed above $64,000, although its 24-hour advance remained below 1%.
Markets Split Over September Fed Move
Investor sentiment remained cautious before the inflation data, with geopolitical concerns adding another layer of uncertainty.
Kyle Rodda, senior analyst at Capital.com, said expectations for the Fed’s September decision were close to evenly divided after mixed signals from recent central bank communications.
Economists had expected core inflation to ease to 2.5% in July, while headline CPI was also projected to slow. A hotter core reading or persistent price pressure in areas that influence the Fed’s preferred PCE measure could increase rate-hike expectations and put pressure on equities.
A weaker inflation reading, on the other hand, could reduce those expectations, especially following last week’s disappointing jobs report.
Strong AI Results Lift Stock Futures
U.S. stock futures gained Wednesday as upbeat results from AI-focused companies improved investor sentiment ahead of the CPI release.
CoreWeave jumped 16% in after-hours trading on strong demand for AI computing capacity. Super Micro climbed 7.6% after its revenue outlook exceeded the highest analyst projections.
The gains pushed Nasdaq 100 futures roughly 0.3% higher. South Korea’s Kospi also advanced 4%, with Samsung and SK Hynix each gaining around 6%.
The July CPI report was expected to show annual headline inflation easing to 3.4% from 3.5%.
The release was particularly significant because it followed a weak employment report that reduced expectations for a September rate hike to around 36%. A softer inflation reading could strengthen expectations for the Fed to maintain its current interest-rate stance.
Metaplanet Transfers 3,881 BTC Without Selling
Metaplanet moved 3,881 BTC, valued at approximately $247 million, through several transactions over a three-hour period on Wednesday, according to Arkham data.
The Bitcoin was transferred from the company’s cold wallets to newly created addresses that are also controlled by Metaplanet. No funds were sent to a cryptocurrency exchange.
Because self-custody transfers do not immediately add coins to exchange liquidity, the movement alone does not indicate that Metaplanet was selling its Bitcoin.
The company has previously carried out similar wallet reorganizations. In March, it moved almost 5,000 BTC using a series of smaller test transactions followed by larger transfers into new addresses. Analysts interpreted those movements as internal custody management rather than selling activity.
Wednesday’s transactions appear to follow the same pattern, with blockchain data providing no clear indication of distribution.
Metaplanet accumulated its approximately 43,000 BTC at an average purchase price of about $96,000. At a Bitcoin price near $63,600, its holdings are currently showing an estimated unrealized loss of $1.4 billion, or roughly 34%.
The Japanese firm has been among the most aggressive corporate Bitcoin buyers since April 2024 and has set a long-term target of accumulating 210,000 BTC.
