Bitcoin Drops to $58K After US CPI Data

Bitcoin (BTC) is trading around $58,000, down more than 4% in the last 24 hours and erasing all of its gains from the past week.

The price declines in BTC led the losses across the market, with major tokens falling. Ether (ETH) fell 3.8 percent, while Solana (SOL), Cardano (ADA), BNB Chain (BNB) and Ripple lost 2.5 percent.

Most of the decline came after July’s U.S. consumer price index (CPI) figures, which rose 2.9% year-on-year as expected but fell below 3% for the first time since 2021.

Despite the NASDAQ and S&P 500 reversing their sell-offs and both ending the day in the green, BTC continued to sell off following the CPI pressure. According to K33 Research, crypto prices have been quite sensitive to US economic data in recent months, with investors also preferring stability over risk assets.

Therefore, some traders expect BTC prices to drop to as low as $55,000 in the near-term, which could mean further losses for major tokens.

“The likely scenario is a renewed sell-off after a potential pullback to $55,000,” FxPro senior market analyst Alex Kuptsikevich said. “Data suggesting the Fed will ease its monetary policy soon could encourage bulls to overcome the short-term downtrend and give them the green light to rally to $66,000.”

Meanwhile, spot bitcoin exchange-traded funds (ETFs) listed in the US saw net outflows of $81 million yesterday, ending a two-day positive streak. Grayscale’s GBTC saw outflows of $56 million, Fidelity’s FBTC saw outflows of $18 million. Ark Invest’s ARKB and Bitwise’s BITB lost $6.7 million and $5.7 million, respectively.

Franklin Templeton’s EZBC and BlackRock’s IBIT were the only products to record net inflows with cumulative $6 million.

Ether ETFs outperformed with $10 million in net inflows, extending the streak to three days. BlackRock’s ETHA saw $16 million in inflows, while Grayscale’s ETHE saw $16 million in outflows. Grayscale’s mini Ether trust ETH, Fidelity’s FETH and Bitwise’s ETHW saw cumulative inflows of $11 million.