Bitcoin Stalls Below $65,000 as US Data Revives Stagflation Concerns
Bitcoin remained stuck near $64,000 on Thursday, continuing to lag behind stocks and gold as new U.S. economic data raised concerns over a potential return of stagflation.
BTC traded around 0.5% lower on the day and remained below $65,000, while U.S. equities opened largely flat. Hopes that Iran and Oman could help reopen the Strait of Hormuz also failed to generate significant market volatility, with uncertainty remaining over whether international shipping would fully resume.
Meanwhile, U.S. ISM Services PMI rose slightly to 54.1 in July, but the employment component dropped to 47.4, its weakest level since March. At the same time, the prices-paid index jumped to 70.3, highlighting the combination of persistent inflationary pressure and a weakening labor market.
Market analysts said the data is increasing concerns about stagflation — a scenario of slowing economic activity alongside elevated inflation.
Bitcoin has remained trapped in a narrow trading range since early June despite gold reaching six-week highs and the S&P 500 hitting record levels.
Glassnode described current BTC conditions as “boredom rather than capitulation,” while Bitfinex Research said Bitcoin is showing underlying stress but has yet to experience the decisive, high-volume move needed to confirm a genuine market breakdown. $BTC
Bitcoin remained stuck near $64,000 on Thursday, continuing to lag behind stocks and gold as new U.S. economic data raised concerns over a potential return of stagflation.
BTC traded around 0.5% lower on the day and remained below $65,000, while U.S. equities opened largely flat. Hopes that Iran and Oman could help reopen the Strait of Hormuz also failed to generate significant market volatility, with uncertainty remaining over whether international shipping would fully resume.
Meanwhile, U.S. ISM Services PMI rose slightly to 54.1 in July, but the employment component dropped to 47.4, its weakest level since March. At the same time, the prices-paid index jumped to 70.3, highlighting the combination of persistent inflationary pressure and a weakening labor market.
Market analysts said the data is increasing concerns about stagflation — a scenario of slowing economic activity alongside elevated inflation.
Bitcoin has remained trapped in a narrow trading range since early June despite gold reaching six-week highs and the S&P 500 hitting record levels.
Glassnode described current BTC conditions as “boredom rather than capitulation,” while Bitfinex Research said Bitcoin is showing underlying stress but has yet to experience the decisive, high-volume move needed to confirm a genuine market breakdown. $BTC