U.S. inflation slowed to 3.4 percent in July, but bitcoin rose only slightly, remaining in the $63,000 range.

On Aug. 12 local time, blockchain outlet Decrypt said markets did not take the consumer price index (CPI) release as a new variable, and the crypto market also failed to show a clear direction.

The Bureau of Labor Statistics (BLS) said July CPI rose 0.1 percent from the previous month. It fell 0.4 percent in June, and the July reading matched market expectations. The year-on-year increase was 3.4 percent, slightly lower than June's 3.5 percent.

In the breakdown, shelter costs accounted for most of the overall rise. The shelter index rose 0.1 percent in July, making up about two-thirds of the monthly increase. Energy prices fell 1.5 percent due to a drop in gasoline prices. Core inflation excluding food and energy rose 0.2 percent on the month and 2.5 percent from a year earlier.

Cooling inflation typically lifts expectations of U.S. Federal Reserve rate cuts and is a positive for risk assets such as bitcoin. But the CPI stayed within the expected range and inflation remains above the Fed's 2 percent target, so it did not act as a factor that could change the policy path.

The fact that related expectations were already largely priced into the market also limited bitcoin's gains. Spot bitcoin exchange-traded funds (ETFs) saw inflows of about $854 million for five consecutive trading days last week. With concerns about rate hikes easing, inflows were the strongest since May, and the analysis is that easing expectations were priced in before the CPI release.

Price action also remains weak. Since a sharp drop in early August, bitcoin has been trading below $64,000 and has stayed between support at $62,000 and resistance at $67,000. The 50-day moving average being below the 200-day moving average was also cited as a bearish signal.

Sentiment in prediction markets also did not change much. Myriad investors did not significantly adjust their outlook even after the CPI release. The market priced the probability of bitcoin reaching $70,000 this month at 17 percent, and it sees a drop to $55,000 as more likely than a rise to $84,000.

Bitcoin also failed to sustain a strong rally earlier when expectations for looser monetary policy grew on weak U.S. jobs data. This CPI release likewise reaffirmed the same pattern. Inflation is cooling but remains far from the Fed's 2 percent target, and the market also did not take it as a new easing signal.

The move showed that bitcoin's price direction may not shift immediately on improving macro indicators alone. If priced-in expectations overlap with weak technical momentum, even favorable signals such as cooling inflation may have only a limited impact on the market.