Bitcoin Struggles to Reclaim $64,000 as Thin Liquidity Limits Recovery

Bitcoin traded near Rs. 60.37 lakh on Friday as the cryptocurrency market remained subdued despite softer US inflation data and reduced expectations of a September Federal Reserve rate hike. Ethereum (ETH) was trading near Rs. 1.79 lakh, reflecting limited movement across major cryptocurrencies. According to market participants, Bitcoin has failed to gain meaningful momentum from softer CPI and PPI readings as weak market liquidity and subdued institutional demand continue to weigh on the cryptocurrency. As per CoinMarketCap data, Bitcoin traded near $63,291 (roughly Rs. 60.37 lakh), and Ethereum (ETH) traded near $1,882 (roughly Rs. 1.79 lakh).

The world's largest cryptocurrency fell 0.83 percent in the last 24 hours, according to Gadgets 360 price tracker. Investors are monitoring geopolitical developments and the Federal Reserve's policy signals for the next major catalyst.

Major altcoins traded with mixed momentum on Friday.

Binance Coin (BNB) was priced around $609.63 (roughly Rs. 58,153), while Solana (SOL) traded near $75.87 (roughly Rs. 7,237). XRP hovered around $1.01 (roughly Rs. 96), and Dogecoin (DOGE) was trading close to $0.070 (roughly Rs. 6.7), indicating limited movement across large-cap cryptocurrencies.

Thin Liquidity Keeps Bitcoin Recovery in Check

Pointing to the limited response from Bitcoin despite softer US inflation readings, Prateek Gupta, Head of Business at Mudrex, said, “The muted crypto response reflects weaker market liquidity, with daily spot Bitcoin volume falling to $1.19 billion (roughly Rs. 1,137 crore), its lowest since 2019, versus a $14.7 billion (roughly Rs. 14,022 crore) peak in February. Institutional demand also remains subdued, with Bitcoin ETFs recording more than $200 million (roughly Rs. 1,908 crore) in outflows this week.”

Examining Bitcoin's muted reaction to the latest US PPI data, the CoinSwitch Markets Desk said, “Producer prices rose 4.7 percent year on year against expectations of 4.9 percent, helping lift the S&P 500 and Nasdaq by around 0.9 percent each. The Fed remains an important part of that picture. Cleveland Fed President Beth Hammack has indicated that inflation may not be cooling quickly enough to warrant greater confidence on the September policy path, even as CME FedWatch continues to show roughly 66 percent odds of no rate change at the next meeting.”

Assessing the broader market environment and investor positioning, Vikram Subburaj, CEO, Giottus.com, said, “Bitcoin has not responded strongly because spot-market activity remains subdued and US spot Bitcoin ETF flows have weakened after a strong start to August [...] Investors should avoid chasing short-term moves while Bitcoin remains below $64,000-$66,000 (roughly Rs. 61.05 lakh-Rs. 62.96 lakh). Staggered buying, limited leverage and disciplined position sizing remain preferable until stronger ETF and spot demand confirms a breakout.”

Overall, Bitcoin's ability to reclaim $64,000 (roughly Rs. 61.05 lakh) and eventually break above $65,100 (roughly Rs. 62.10 lakh), while defending support near $62,000 (roughly Rs. 59.14 lakh), is expected to determine its next major move.