Bitcoin seemed headed for brighter days in the immediate aftermath of a mildly surprising decline in the June Consumer Price Index (CPI) Wednesday, before retreating into the shadows it’s occupied for the better part of a month well below $31,000. The largest cryptocurrency by market capitalization was recently trading at $30,357, down 0.8% over the past 24 hours. Despite the positive inflation report, BTC surged in the hour immediately following the CPI release, a 3% increase that was lower than expected and down from 4% the previous month, before dropping back into its range-bound state.
Former Commodity Futures Trading Commission Chair Timothy Massad told journalists TV’s “First Mover” program on Wednesday that the CFTC and SEC could create basic investor and market protection standards for exchanges through a self-regulatory organization as an incremental step before determining digital assets’ status. “We’re very deliberately saying, we don’t have to resolve that in order to put in place some basic investor protection standards,” Massad said.
Even as inflation risk fades, bitcoin remains stuck below $31,000. Wednesday’s CPI report showed sizable decelerations in both overall and core U.S. inflation, which one might’ve thought would drive BTC’s price higher. FRNT’s Strahinja Savic noted stocks’ and cryptos’ veering path, a trend that took flight months ago. “We’ve seen a decline in correlations between bitcoin and traditional assets heading into this CPI release, and that has been a strong theme in 2021,” he wrote.
Bitcoin Remains Stuck Below $31K Despite Fading Inflation Risk
