• Bitcoin did not seem to be affected by the latest CPI data, which showed a slight increase in CPI, in line with economists' forecasts.

  • Macroeconomic factors aside, analysts are still debating why Bitcoin won’t break $30,000.

  • The U.S. Department of Labor announced on Thursday that the U.S. overall CPI rose 0.2% in July, and the inflation indicator rose to 3.2%.

Bitcoin and Ethereum opened flat in Asia, no doubt unfazed by the latest Consumer Price Index (CPI) data. The two largest cryptocurrencies continue to withstand a macro-scale surge.

The CPI is one of the top factors the Federal Reserve considers when setting interest rate policy. Last month's June report was the lowest in two years, and widespread expectations suggested it would fall again in July. Those forecasts were accurate.

Bitcoin reacts to new CPI data

Bitcoin fell below the $29,500 mark during early Asian trading on Friday. Ethereum also fell amid uneven trading among the top 10 non-stablecoin cryptocurrencies. In the short term, market experts expect Bitcoin and Ethereum to remain stable before a potential rebound supported by easing macroeconomic conditions.

Bitcoin fell 0.39% in the past 24 hours to $29,439.41 as of 6:30 a.m. Hong Kong time, but was up 0.95% this week, according to CoinMarketCap data. After peaking at $29,688 overnight, the largest cryptocurrency by market value is hovering around the $29,500 threshold.

The latest Consumer Price Index (CPI) data showed a modest increase in CPI, in line with economists' forecasts.

The Consumer Price Index (CPI) rose 0.2% in July, and the core CPI, excluding food and energy, also rose 0.2%. As part of its ongoing anti-inflation policy, the Federal Reserve is less likely to raise interest rates in September as the CPI rose 3.2% and the core CPI rose 4.7%.

Macroeconomic factors aside, analysts continue to ponder why Bitcoin has yet to rise above $30,000.

The U.S. Labor Department's overall consumer price index (CPI) rose 0.2% in July, bringing the inflation rate to 3.2%, lower than the 3.3% forecast by Reuters.

According to recent reports, analysts and stakeholders at cryptocurrency trading firms continue to point to uncertainty surrounding the SEC’s approval of a spot Bitcoin ETF, miners taking profits ahead of Bitcoin’s halving, a lack of new retail market participation, and strong resistance to derivatives trading, all of which are tightening trading ranges and suppressing volatility.

While many adrenaline-addicted cryptocurrency traders miss the volatility, Bitcoin does look like a good store of value today.

On the market calendar, analysts also circled August 13 as the next deadline for ARK Investment Management to apply for a spot Bitcoin exchange-traded fund (ETF) in the United States.

ARK initially submitted its application in April and subsequently amended it in July.

ARK Invest CEO Cathie Wood told Bloomberg on Monday that if the U.S. Securities and Exchange Commission decides to approve multiple spot crypto ETF applications, it may approve them at the same time.

The top 10 non-stablecoin cryptocurrencies were trading unevenly on Friday. Solana led the gains, rising 1.59% to $24.70, with a weekly gain of 9.56%. Tron rose 1.15% to $0.07717, with a gain of 0.52% last week.

Over the past 24 hours, the total cryptocurrency market capitalization fell 0.24% to $1.17 trillion, and trading volume fell 26.24% to $26.47 billion.

Looking ahead, SEC discussions related to Ripple, ETF updates, and news related to Binance and Coinbase (COIN) will all influence the market. However, discussions among U.S. lawmakers and activities of the SEC must also be taken into account.

Additionally, investors should assess the U.S. PPI report in the afternoon session. Rising inflationary pressures would increase the likelihood of a September rate hike by the Federal Reserve, which could heighten recession fears.

In an interview with Yahoo! Finance on Thursday, San Francisco Fed President Mary Daly said the latest CPI data does not indicate that the central bank has defeated inflation. She added that the Fed remains fully committed to achieving its 2% inflation target.

The Fed will meet on Sept. 19 to determine the next path for interest rates, which are currently between 5.25% and 5.50%, the highest level in the past 22 years. The CME FedWatch tool predicts an 89.0% chance of no rate hike in September, up from 87.0% on Thursday.