The crypto market stayed rangebound Thursday as softer U.S. inflation data eased rate-hike fears but failed to trigger a broad risk-on move. Bitcoin held near $63,000-$64,000, while total crypto market capitalization hovered around $2.16 trillion, showing that traders remain cautious despite a more supportive macro backdrop.
July consumer inflation rose about 0.1% month over month and 3.4% year over year, while core CPI eased to roughly 2.5%. The report reinforced the broader disinflation trend, but because the numbers were close to expectations, markets did not receive the kind of surprise that typically drives a sharp repricing in crypto.
Crypto Market Cap Holds Near $2.16 Trillion
The broader crypto market remains locked in consolidation rather than building a clear trend. A four-hour TradingView chart shows total crypto market capitalization near $2.16 trillion, below the 50-period exponential moving average around $2.17 trillion.
That position suggests the market has not yet reclaimed short-term momentum. However, the gap is small, and the chart also shows repeated support around the $2.14 trillion-$2.15 trillion area.
RSI stood near 47, below the neutral 50 level but recovering from weaker readings earlier in the week. That supports a neutral-to-cautious outlook rather than a deeply bearish one.
Crypto Total Market Cap. Source: TradingView
For the crypto market to gain stronger upside momentum, total capitalization would likely need to move back above the 50-period EMA and challenge the $2.18 trillion-$2.20 trillion area. Until then, price action remains consistent with consolidation.
Bitcoin Dominance Slips as Altcoins Show Selective Strength
Bitcoin dominance also weakened, suggesting some capital is rotating toward altcoins even though the broader market remains subdued.
The four-hour BTC dominance chart showed Bitcoin's share of the crypto market near 59.06%, below its 50-period EMA around 59.20%. Dominance has fallen from recent highs near 59.5%, while RSI recovered to about 42 after briefly approaching oversold territory.
Bitcoin-Dominance-Crypto-Market. Source: TradingView
The decline is not strong enough to confirm a broad altcoin breakout, but it does support the idea of selective rotation. Coins such as Hyperliquid's HYPE and Monero have outperformed Bitcoin in recent trading, while other large-cap altcoins remain mixed.
That distinction matters. Falling Bitcoin dominance can sometimes signal improving appetite for altcoins, but the total market-cap chart still shows limited expansion. In other words, traders appear to be rotating within crypto rather than aggressively adding new capital to the asset class.
HYPE Holds $54 Support as Short-Term Structure Improves
Hyperliquid's HYPE is one of the clearer examples of that selective strength. Analyst Altcoin Sherpa said the token still looks relatively strong in the short term, with the $54 region acting as the key support area to watch.
HYPE $54 Support. Source: Altcoin Sherpa (@AltcoinSherpa) on X
The daily HYPE/USDT chart shows price rebounding from the $54.07 support area after testing the same zone several times since May. Those repeated reactions make $54 an important structural level because buyers have consistently stepped in around that region.
HYPE was trading near $57.58 on the chart, keeping price above support but still well below major resistance around $75.76. The token has also started forming higher short-term lows after dipping toward the low-$52 area in late July, suggesting selling pressure has eased.
The setup is constructive, but it does not yet confirm a larger breakout. HYPE would need to keep holding above $54 and build momentum through the upper-$50s and $60 area before the longer-term resistance near $75.76 becomes relevant again.
A sustained break below $54 would weaken the short-term structure and increase the risk of another move toward the low-$50 region. For now, the chart supports Altcoin Sherpa's view that HYPE remains one of the stronger-looking altcoins in the market.
Cooling CPI and PPI Reduce Fed Pressure but Do Not Change the Trend
The CPI report removed some immediate macro risk by lowering pressure on the Federal Reserve to raise rates again quickly. Thursday’s PPI report reinforced that view, with producer prices unchanged in July and annual PPI inflation slowing to 4.7% from 5.5%.
Still, inflation remains above the Fed’s 2% target, making a pause more likely than a rapid shift toward aggressive rate cuts.
That helps explain why Bitcoin and the broader crypto market barely reacted. Softer inflation is supportive in principle, but much of the improvement appears to have been priced in before the reports.
The next major crypto move will likely require a stronger catalyst, such as a meaningful shift in Fed expectations, fresh ETF flows, a breakout in Bitcoin’s current trading range or a sharp change in derivatives positioning.
For now, the crypto market remains in a holding pattern. Bitcoin is stable near $64,000, total market capitalization is consolidating around $2.16 trillion, and declining BTC dominance points to selective altcoin strength, with HYPE standing out as long as its $54 support holds.
