Bitcoin Falls 2.7% as July CPI Print Fails to Spark Relief Rally

Bitcoin fell 2.7% over the week to close near $63,000 on Sunday, unable to muster a relief rally despite July inflation arriving exactly as forecast. Spot Bitcoin ETFs reversed from their strongest inflow week since April into consecutive days of outflows as sentiment remained numb rather than panicked.

The July consumer price print showed headline inflation at 3.4% year-over-year and 0.1% month-over-month, with core rates at 2.5% annually and 0.2% monthly. While both readings cooled from prior months—headline CPI down from 3.5% and core from 2.6%—inflation remained well above the Federal Reserve's 2% target, which dampened expectations for rate cuts and denied crypto markets the expected boost from softer price pressures.

Bitcoin traded between $63,000 and $66,500 amid subdued volatility, with support at $61,650 and resistance at $67,253. Daily moves never exceeded 1.5%, and the ADX reading of 12.37 confirmed the absence of any meaningful trend. Ethereum fell 1.71% over the same period. The week also saw broader structural shifts: Goldman Sachs agreed to acquire NEOS Investments for up to $2.25 billion to gain three crypto income ETFs, Riot Platforms sold 4,300 BTC to fund AI data center expansion, and Grayscale withdrew three altcoin ETF registrations. XRP briefly dipped below $1 for the first time in nearly two years following a cross-chain bridge exploit.

Crypto trading volumes have fallen to their lowest levels in three years, limiting the firepower available to push Bitcoin decisively in either direction.