Bitcoin Holds $64K as July CPI Meets Market Expectations

On-chain data shows Japanese Bitcoin treasury firm Metaplanet moved 3,881 BTC between wallets it controls rather than sending the coins to an exchange. The transfer does not appear to represent a sale, despite the company holding an estimated $1.4 billion in unrealized Bitcoin losses.

July CPI Matches Forecasts

U.S. inflation data for July came in largely as expected. Headline CPI rose 0.1% month over month and increased 3.4% from a year earlier.

Core CPI advanced 0.2% on a monthly basis and 2.5% annually.

Bitcoin continued to trade near $64,000 after the report, while Nasdaq futures gained and Treasury yields moved lower.

Markets priced in a 44% chance of a Federal Reserve rate increase in September, down from levels anticipated before the CPI release. Recent weakness in employment data has also influenced expectations for the Fed’s next move.

Dollar Index Tests Trendline Support

The U.S. Dollar Index is hovering around an important support level marked by a bullish trendline that has supported its recovery from the January low of 95.55.

A rebound from this area could indicate that the dollar’s broader rally remains intact. Conversely, a decisive move below the trendline could signal a potential shift in trend.

Inflation data remains an important factor for the dollar. A stronger-than-expected core CPI reading could have encouraged renewed buying of the greenback.

Gold and Silver Extend Gains

Gold and silver continued their advance ahead of the CPI report.

Gold traded near $4,420, gaining more than 1% over 24 hours and around 7% for the month. Silver climbed above $66, adding more than 2.5% over the previous day and roughly 12% during the month.

Bitcoin also moved above $64,000, although its daily gain remained below 1%.

Fed Outlook Remains Uncertain

Investors remained cautious heading into the inflation release, with geopolitical tensions adding to market uncertainty.

Kyle Rodda, senior analyst at Capital.com, said expectations for the Fed’s September policy decision were nearly evenly split following mixed signals from recent FOMC communications.

Economists had forecast core inflation at 2.5% for July, while headline CPI was also expected to moderate. A hotter core reading or continued price pressure in components that influence the Fed’s preferred PCE inflation gauge could increase expectations for a rate hike and weigh on stocks.

A softer reading could have the opposite effect, particularly after the disappointing employment report released the previous week.

AI Earnings Boost U.S. Stock Futures

U.S. stock futures advanced Wednesday as strong earnings from AI-related companies lifted investor sentiment before the inflation report.

CoreWeave jumped 16% in after-hours trading on robust demand for AI computing services. Super Micro gained 7.6% after providing a revenue outlook that exceeded even the highest analyst expectations.

The gains lifted Nasdaq 100 futures by about 0.3%. South Korea’s Kospi rose 4%, while Samsung and SK Hynix each advanced roughly 6%.

The July CPI report was expected to show annual headline inflation easing to 3.4% from 3.5%.

The data was closely watched after a weak jobs report lowered expectations for a September rate hike to approximately 36%. A softer CPI reading could further support the case for the Federal Reserve to leave rates unchanged.

Metaplanet Moves $247M in BTC Between Its Own Wallets

Metaplanet transferred 3,881 BTC worth roughly $247 million across multiple transactions over three hours on Wednesday, according to Arkham data.

The coins moved from Metaplanet’s cold-storage wallets to newly generated addresses that remain under the company’s control. The BTC was not transferred to an exchange.

Such self-custody movements generally do not create immediate selling pressure because the coins are not being placed into exchange liquidity. As a result, Wednesday’s transactions do not provide evidence that Metaplanet was selling its holdings.

The company has conducted similar wallet reorganizations in the past. In March, it moved nearly 5,000 BTC through smaller test transactions followed by larger transfers into new wallets. Analysts interpreted the activity as internal custody management rather than distribution.

The latest transactions appear to follow the same pattern, with no clear on-chain evidence of selling.

Metaplanet acquired its approximately 43,000 BTC at an average price of around $96,000 per coin. With Bitcoin near $63,600, the company’s holdings carry an estimated unrealized loss of about $1.4 billion, equivalent to roughly 34%.

Metaplanet has emerged as one of the most aggressive corporate Bitcoin buyers since April 2024 and has established a long-term goal of accumulating 210,000 BTC.