# Bitcoin Targets $63K as Fed Rate Hike Odds Drop to 60% Market volatility expected following US inflation data release. - **Source:** [Cointelegraph.com News](https://brifing.si/source/2e81e982-0137-4db0-8ac2-351f37085775) - **Published:** 2026-08-12 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/b354f968-3682-402d-b7d5-6c08379e229b ## Bitcoin Hovers Around $63K Bitcoin (BTC) is trading at $63,429. Following US inflation data matching expectations, the BTC/USD pair dropped below $63,500. Bitcoin showed weakness at the Wall Street opening, losing its intraday gains. The July Consumer Price Index (CPI) came in at 0.1% monthly and 3.4% annually, aligning with market forecasts. ## Inflation Data Breakdown US Bureau of Labor Statistics reported shelter index rose 0.1% in July, accounting for two-thirds of total inflation increase. Food prices increased 0.1% while food away from home index rose 0.3%. Energy index declined 1.5%. While not repeating June's surprise drop, inflation didn't trigger volatility in risk assets. ## Fed Rate Decision Expectations CME Group's FedWatch Tool shows 60% probability of rates remaining at current 3.50-3.75% level in September meeting, up from 30% a month ago. Fabian Dori, CIO at Sygnum Bank, noted cooling inflation and weak labor market data could support Fed avoiding rate hikes, benefiting crypto liquidity conditions. ## Gold and Risk Assets Safe-haven gold remained stable after hitting nine-week highs on Tuesday. Dori stated CPI data combined with employment figures haven't changed macro backdrop for risk assets. Bitcoin options market continues pricing premium for downside protection below $60,000. ## Bitcoin Resistance Levels Analyst Rekt Capital noted each bounce from $63,000 shows weaker momentum. The 50-month exponential moving average (EMA) at $65,827 has become new resistance. According to Bitfinex Alpha report, Bitcoin hasn't closed above $65,000 since July 26 despite multiple attempts. ## Producer Price Index Outlook Thursday's July Producer Price Index (PPI) release will be next key data point for market volatility. Andrei Grachev of DWF Labs noted downside protection below $60,000 costs more than equivalent upside bets for August expiry. PPI data may indicate whether this premium eases. ## Miners and Fee Revenue Bitcoin miners' revenue from fees hit new 10-year low, accounting for less than 0.7% of total income. This development raises questions about network security and mining economics. The trend reflects changing dynamics in blockchain transaction processing. ## Key Market Takeaways Bitcoin price action remains sensitive to macroeconomic data. Fed policy expectations and inflation figures directly impact crypto market liquidity conditions. The testing of $63,000 support level provides important technical signals. Market participants remain cautious ahead of September Fed meeting. ## Sources covering this story - https://cointelegraph.com/markets/bitcoin-eyes-63k-as-us-cpi-relief-sends-september-fed-rate-pause-odds-to-60?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._