Bitcoin (BTC) Faces Pressure as Fed Rate Hike Speculation Intensifies — $64K Level Under Watch

Key Takeaways

• BTC declined 0.69% to approximately $64,384, facing rejection at the $64,800–$65,000 resistance level
• Weekly U.S. jobless claims registered at 199,000, falling short of the 204,000 estimate and indicating labor market strength
• Market participants now assign a 54.71% probability to a 25-basis-point rate increase by the Fed in September
• Rising crude oil prices and geopolitical tensions in the Strait of Hormuz weighed on risk-sensitive assets
• Bitcoin spot ETF inflows surged to $626 million in early August, representing a significant jump from July’s $172.4 million

The leading cryptocurrency experienced downward momentum on Thursday as renewed labor market strength and mounting rate hike concerns weighed on digital asset valuations. Bitcoin declined 0.69% to reach $64,384, retreating after encountering significant resistance at higher price levels.

Bitcoin (BTC) Price

Fresh employment data from the U.S. Department of Labor revealed initial jobless claims totaling 199,000 for the week concluded on August 1. This figure fell beneath analyst expectations of 204,000 and registered marginally above the previous week’s revised figure of 198,000. Meanwhile, the four-week moving average declined to 198,750, representing a decrease of approximately 4,500 from the earlier period.

Robust employment conditions provide the Federal Reserve with additional justification to maintain elevated interest rates. Elevated borrowing costs typically diminish investor appetite for speculative assets such as Bitcoin.

Market analyst Ted Pillows shared observations on X, noting that spot market participants were driving BTC prices upward and remarking “This looks good.” His commentary indicated that certain traders continue to identify value at present price points, despite mounting macroeconomic challenges.

According to the CME FedWatch Tool, market participants are assigning a 54.71% likelihood to a 25-basis-point interest rate increase at the Federal Reserve’s September policy meeting. Additionally, investors are monitoring Fed Chair Kevin Warsh, who is reportedly developing a revised communication strategy for the central bank.

Geopolitical Tensions Compound Market Weakness

Crude oil values climbed on Thursday, weighing on broader market risk appetite. News surfaced regarding a possible agreement to restore access to the Strait of Hormuz, with Iran and Oman reportedly examining a preliminary framework. The proposed arrangement would allegedly impose limitations on U.S. and Israeli vessel transit through the strategic waterway pending compensation payments.

Such conditions would presumably prove unacceptable to U.S. officials, maintaining heightened market uncertainty. Bitcoin moved lower in tandem with other risk-oriented assets as market participants digested these developments.

Bitcoin ETF Capital Flows Show August Improvement

Notwithstanding recent price volatility, spot Bitcoin ETF activity demonstrated notable enhancement. Capital inflows totaled $626 million during early August, marking a substantial increase from July’s complete monthly total of $172.4 million, based on SoSoValue analytics.

This development follows Bitcoin ETF net outflows approaching $7 billion throughout the combined May and June timeframe.

From a technical perspective, BTC has recovered from recent lows near $62,400 but continues struggling to establish a decisive close above the $64,800–$65,000 resistance band. Selling pressure has consistently emerged at this threshold, forcing price action back toward the $64,000 support region.

The $626 million in spot Bitcoin ETF inflows recorded during early August represents an encouraging development amid the current market landscape.

The post Bitcoin (BTC) Faces Pressure as Fed Rate Hike Speculation Intensifies — $64K Level Under Watch appeared first on Blockonomi.