Bitcoin Price Drops Below $63K as CPI, Hormuz Risks Loom

Key Insights:

• Bitcoin price lost the $63K mark and plunged back to around $62.7K.
• Market sentiment is bolstered by Bitcoin ETF inflows and weaker labor data.
• CPI, PPI, and Hormuz headlines could trigger sharp market swings.

Bitcoin price fell below $63,000 after losing that level during early Monday trading. The move followed renewed US-Iran tensions and pressure across risk assets. Still, the market held well above July’s major support zone near $59,000.

Fresh Bitcoin ETF inflows, softer employment data, and progress on US crypto legislation improved the sentiment.

According to analyst That Martini Guy, $61,000 is the first major support. A $64,000 reclaim would improve the short-term structure.

The chart also places the next major resistance near $65,700. Traders now face a week packed with inflation data, retail sales, bank earnings, and geopolitical headlines.

Bitcoin Price Faces Its Critical Resistance Test Near $64,000

The latest recovery began after Bitcoin price briefly fell below $58,000 during June’s selloff. Buyers entered quickly, pushing the asset back toward the $64,000 region. That rebound restored confidence after several weeks of liquidations and weak momentum.

The current BTC/USD chart shows Bitcoin resistance at $64,000, where sellers blocked several recovery attempts. A firm close above that level could expose $65,700. A failure to reclaim it may keep the market trapped between resistance and the $61,000 support area.

BTC crypto price action near $61,000 now matters more than intraday volatility. A clean breakdown could shift attention toward the $59,000-$59,500 demand zone. That area acted as major support during the latest recovery phase.

The broader crypto market stayed near a $2.26 trillion valuation over the weekend. Ethereum also held above $1,800 after gaining about 15% over two weeks. Those moves show buyers remain active, although macro risks could quickly weaken the rebound.

Bitcoin Price Draws Support from Fresh ETF Inflows

Bitcoin ETF inflows returned after a prolonged period of withdrawals. The renewed demand helped stabilize supply conditions and strengthen the market’s institutional base. Spot funds now control nearly 6% of Bitcoin’s maximum supply, based on the supplied market figures.

Corporate ownership also adds another layer of long-term demand. Public companies hold an estimated 5.7% of circulating Bitcoin. Strategy remains the largest corporate holder, with roughly 845,000 BTC following its most recent reported purchase.

Risk appetite was also bolstered by the softer US employment data. Weaker labor data eased worries about another dramatic policy-tightening move. The move also helped Bitcoin price despite the sell-off in equity markets amid rising Treasury yields.

Regulatory optimism came with progress on the CLARITY Act. The proposed framework seeks to establish oversight of digital assets in the United States. A Senate vote remains necessary, while the August recess limits the available legislative window.

Inflation Data and Iran Risks Could Shape Bitcoin’s Next Move

This week brings several events that could challenge the recovery. June CPI data arrives Tuesday, followed by PPI inflation figures on Wednesday. Retail sales and the Philly Fed manufacturing index are scheduled for Thursday. Michigan inflation expectations and consumer sentiment follow on Friday.

Nearly 10% of S&P 500 companies also report earnings. Major banks, including JPMorgan, Goldman Sachs, Bank of America, Wells Fargo, and Citibank, report on Tuesday. Morgan Stanley and BlackRock follow on Wednesday.

Meanwhile, the US and Iran exchanged heavy airstrikes, while Tehran said it had closed the Strait of Hormuz. Any disruption to energy flows could lift oil prices and revive inflation concerns.

Bitcoin price has shown resilience, but headline risk still controls short-term direction. A move above Bitcoin resistance at $64,000 would support a broader recovery. A drop below $61,000 would place the $59,000 BTC price support zone back under pressure.

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