Bitcoin Stuck in a Range as Inflation Data Matches Expectations
Bitcoin (BTC) traded around $63,400 on Wednesday, little changed over the past 24 hours, as the latest U.S. inflation data met expectations, failing to provide a catalyst for a breakout from its tight trading range. The cryptocurrency has been stuck between $62,000 and $66,000 for the past five weeks.
The July CPI report showed headline inflation at 3.4% annually, in line with forecasts, while core CPI rose 2.5% year-over-year. The data took an immediate inflation shock off the table but didn't offer much fuel for a rally. As Ryan Lee, chief analyst at Bitget Research, put it, the print "neither forces a hawkish re-pricing nor delivers a clear dovish catalyst."
AI Infrastructure Stocks Surge on Strong Q2 Earnings
While bitcoin remained subdued, AI infrastructure stocks stole the spotlight. Dell Technologies surged 9.7% to a record closing high of $484, while Nebius extended its rally to 35% and CoreWeave held onto a roughly 20% daily gain. The S&P 500 gained 0.3% to finish near record highs, and the tech-heavy Nasdaq advanced 0.7%.
Strong earnings from WhiteFiber and Nebius also boosted sentiment. WhiteFiber's revenue rose 54% to $28.8 million, while Nebius saw revenue surge 454% to $582.3 million, with adjusted EBITDA swinging to $236.2 million.
Tokenization Stocks Rise Ahead of SEC Meeting
Stocks tied to tokenization, such as Figure Technology Solutions and Securitize, gained ahead of their quarterly results and a potentially important SEC meeting on Friday. The SEC is expected to propose its first formal rules for crypto businesses, possibly including an "innovation exemption" for trading tokenized securities.
Metaplanet's Bitcoin Transfer: Not a Sale
Blockchain data shows that Metaplanet moved 3,881 BTC (worth about $247 million) between wallets it controls, not to an exchange, so the transfer isn't a sale despite the company's $1.4 billion paper loss. Metaplanet bought its roughly 43,000 BTC at an average of about $96,000, and with bitcoin near $63,600, it's sitting on an unrealized loss of about 34%.
Market Outlook: Fed's Next Move Is a Coin Toss
Market sentiment is lukewarm heading into the inflation data, with the odds of a September Fed rate hike close to 50/50. A hot core CPI print would lift hike odds and weigh on equities, while a soft one would cut them, especially after last week's weak jobs report. Analysts point to Thursday's PPI report as the next test for inflation.
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