Bitcoin jumps above $64K as whale buying puts $66K breakout in play

Bitcoin ($BTC) begins the new week bullish as the leading cryptocurrency is up by more than 1% in the last 24 hours.

It is trading above $64,000 on Tuesday after successfully defending the $62,300 support level following the release of softer US inflation data last week.

Trading volume increased when Bitcoin approached the support area, suggesting that a cluster of buy orders may be supporting the price around the $62,300 threshold.

However, persistent monetary-policy uncertainty continues to limit the cryptocurrency’s recovery.

Cooling US inflation reduces rate-hike expectations

The probability of the Federal Reserve raising interest rates in September dropped to about 30% last week, well below the roughly 76% recorded a month earlier.

The shift followed data showing that annual US inflation eased to 3.4% in July, down from 3.5% in June.

The softer reading reduced the immediate pressure on policymakers to tighten monetary policy further.

Nevertheless, inflation remains 1.4 percentage points above the Federal Reserve’s 2% target.

Three policymakers also disagreed with the decision to leave rates unchanged at the most recent Federal Open Market Committee meeting.

The central bank may therefore delay another increase without abandoning its hawkish position.