Bitcoin Weakens in $63,000 Range as Market Waits for CPI
Bitcoin continued to trade weakly in the $63,000 range as uncertainty over U.S.-Iran negotiations surrounding the Strait of Hormuz persisted and investors grew cautious ahead of the release of U.S. consumer price index (CPI) data.
As of 9:20 a.m. on Aug. 12, Bitcoin was trading at 89.67 million won on South Korean cryptocurrency exchange Bithumb, down 0.24% from the same time the previous day.
At the same time, Bitcoin was trading at $63,488 on CoinMarketCap, a global cryptocurrency market data platform, down 0.61%.
As Bitcoin remained under pressure, uncertainty surrounding negotiations between the United States and Iran over the Strait of Hormuz was also cited as a factor weighing on investor sentiment. Although negotiations between the two sides have continued, the lack of a clear agreement has dampened appetite for risk assets.
Concerns over potential disruptions to oil supplies have also persisted as Iran maintains a hard-line stance on reopening the Strait of Hormuz. Fears that higher global oil prices could add to inflationary pressure are also weighing on the cryptocurrency market.
Market participants are particularly focused on the U.S. July CPI report, which is due to be released on Aug. 12 local time. With rising oil prices fueling concerns over inflation, the data could influence market expectations for the Federal Reserve’s future monetary policy.
U.S. CLARITY Act Vote Delayed to September; Passage Probability Seen at 25%
Uncertainty over the U.S. cryptocurrency market structure bill, the CLARITY Act, has increased after a Senate vote was pushed back to September.
According to foreign media reports on Aug. 11 local time, U.S. Senate Republican Majority Leader John Thune said a cloture vote on the CLARITY Act would be held on Sept. 15. TD Cowen Washington Research estimated that the bill has a 25% chance of becoming law within the next several months.
Key issues surrounding the legislation include provisions governing stablecoin rewards and ethics rules concerning conflicts of interest involving public officials and cryptocurrency businesses. Anti-money laundering (AML) and consumer protection concerns, along with a limited congressional calendar, are also complicating the legislative process and drawing attention to the bill’s prospects in September.
“Institutional Funds Pour Into Ethereum Ahead of CPI; Spot Buying Surges 7-Fold”
Institutional investors have shown notable demand for spot Ethereum (ETH) ahead of the U.S. CPI release.
According to on-chain analytics platform Nansen on Aug. 11 local time, the pace of spot Ethereum purchases by institutional investors, including asset managers, was 7.2 times higher than normal levels. The surge was attributed to strong demand for Ethereum ahead of the release of key inflation data.
Caution, however, remains in the derivatives market. Professional traders were found to be maintaining net short positions in Bitcoin and Ethereum derivatives, positioning for the possibility of higher inflation and interest rates.
“Bitcoin Is Piling Up Again on Binance; Holdings Surpass 667,500”
Bitcoin holdings on global cryptocurrency exchange Binance have recently increased, reaching their highest level in about six months.
On Aug. 11 local time, on-chain analyst Arab Chain estimated that Binance’s Bitcoin holdings had risen from about 616,000 in April to more than 667,500 recently. That marks the highest level since February.
Arab Chain said an increase in Bitcoin holdings on centralized exchanges can indicate that more Bitcoin is available for trading in the market. However, it cautioned that the increase alone does not necessarily mean selling pressure has intensified, noting that the movement could also reflect liquidity redistribution or changes in custody and trading practices.