Bitcoin held below $65,000 as it opened flat alongside US stocks on Thursday, extending a stall in place since the start of June. New US PMI data showed slowing employment alongside surging input costs, reviving stagflation warnings, while an Iran-Oman understanding on the Strait of Hormuz left oil little changed. Analysts described Bitcoin's price action as boredom rather than a breakdown, even as gold and the S&P 500 climbed to fresh highs separately this week.
Bitcoin traded flat below $65,000 at Thursday's Wall Street open, with BTC/USD hovering above $64,000, down around 0.5% on the day, while US stocks opened flat. The pair has stalled inside a tight range since the start of June.
Iran's Hormuz caveat leaves oil unmoved
An understanding between Iran and Oman to reopen the Strait of Hormuz shipping route did little to spark volatility, since it remained unclear whether international shipping would fully resume without US participation. Iran's Deputy Foreign Minister Kazem Gharibabadi said the arrangement does not by itself mean the strait will reopen, in comments to the state-run Islamic Republic News Agency.
US WTI crude oil held little changed at $76 a barrel, after touching three-week lows of $74.30 the day before.
PMI data revives stagflation warnings
Trading resource The Kobeissi Letter pointed to Wednesday's US ISM Services PMI report, which showed the headline index rising 0.1 point in July to 54.1 while employment dropped 3.6 points to 47.4, its lowest reading since March. The prices-paid component, a proxy for input-cost inflation, surged 2.6 points to 70.3, near its highest level since October 2022 after climbing 16.9 points since March 2024.
Kobeissi said the odds of stagflation were intensifying based on the combined readings.
Analysts call the range boredom, not a breakdown
According to Glassnode: "boredom rather than capitulation" is how BTC/USD is behaving. It noted Bitcoin showed no reaction as gold hit its highest levels in six weeks and the S&P 500 reached all-time highs.
Bitfinex Research, the exchange's analytics arm, said macro developments and Bitcoin's underperformance against the Nasdaq and S&P 500 signal underlying stress. Still, it added that a genuine breakdown requires something more forceful, followed by volume-supportive price action.
Source: Cointelegraph.com News
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