The cryptocurrency market experienced a significant contraction, with global market capitalization edging down 1.24% to $2.19 trillion according to CoinMarketCap. As reported by The Economic Times, trading volume reached $22.3 billion during the latest decline. This represents a challenging phase for the sector as liquidity continued leaving the market, with the decline following another unsuccessful attempt to hold above $65,000 after Bitcoin touched $65,300 on August 10.
Bitcoin slipped below $64,000 after a fourth failed attempt to hold that level, trading at $63,780 with a 2% decline in the latest session. According to crypto.news, Bitcoin traded as low as $63,852 on Binance before recovering to approximately $64,281. The decline followed another deterioration in U.S.-Iran negotiations over reopening the Strait of Hormuz, with Brent crude rising above $89 a barrel as reduced hopes for an agreement renewed concerns about energy supplies and inflation. Ethereum fell more than 2%, while XRP also declined significantly, with broader crypto markets showing weakness across the board.
The $63,900–$64,000 region remains the main short-term pivot ahead of the July CPI report, with daily RSI remaining neutral at 50.31. As noted by crypto.news, Bitcoin continues to trade below its 100-day and 200-day moving averages, with the asset trading slightly above its 20-day simple moving average at $64,219 and its 50-day SMA at $63,392. Liquidation clusters near $63,700 and $65,600 could attract price during the next volatility spike, with the 4-hour Supertrend turning bearish and placing resistance at $65,210. Bull-bear power stands at negative 612, confirming that sellers have regained short-term control, though the reading is smaller than extreme June sell-off levels.
U.S. spot Bitcoin ETFs recorded $144.6 million in net outflows on Aug. 10, ending five consecutive sessions of positive flows that attracted $865.3 million from August 3-7. According to SoSoValue data, the outflows included $53.6 million from BlackRock's IBIT and $52 million from Grayscale's GBTC. As noted by The Economic Times, Bitcoin's failure to clear $65,400 suggests that ETF demand is being met by sufficient selling elsewhere in the market and staggered allocations are preferable to concentrated entries, particularly before the inflation release. The reversal reduced one source of spot demand as macroeconomic uncertainty increased.
Brent crude rose above $89 a barrel as reduced hopes for an agreement between Washington and Tehran weakened, with negotiations over the Strait of Hormuz remaining unsettled. Higher oil prices can complicate the Federal Reserve's inflation outlook by raising transportation and production costs, reducing demand for risk assets as U.S. traders prepared for the July Consumer Price Index report. The benchmark 10-year yield rising toward 4.7% has shifted focus from employment data to inflation concerns, with the U.S. Bureau of Labor Statistics publishing July CPI data on Aug. 12 at 8:30 a.m. Eastern Time. A cooler reading could ease pressure on Treasury yields and help Bitcoin recover $65,000, while a hotter reading would strengthen the case for restrictive monetary policy.
