which eased concerns about a near-term Federal Reserve rate hike but did little to spur further recovery.

The world's largest cryptocurrency was last trading 1.2% lower at $63,499.20 by 2:51 PM Moscow time.

Bitcoin has largely remained in the $63,000-$65,000 range and has struggled to regain momentum above $65,000.

Traders weigh Fed outlook after US CPI data

US consumer prices rose 0.1% in July from June and 3.4% year-over-year, in line with economists' expectations. The core consumer price index (CPI), which excludes food and energy, increased 0.2% month-on-month and 2.5% year-on-year, also in line with forecasts.

This data reduced pressure on the Federal Reserve to raise interest rates at its September meeting.

Traders lowered the probability of a September rate hike to about 40% from 54% before the report's release, according to CME Group's FedWatch tool.

However, for financial markets, the softer inflation data proved insufficient for a sustained rally. Investors remain focused on whether upcoming economic data will support expectations that the Fed will refrain from further tightening.

The next major test will come from the US producer price report, due later on Thursday.

Geopolitical risks also remained a restraining factor. Talks between the US and Iran aimed at easing tensions around the Strait of Hormuz have stalled, with Tehran and Washington putting forward competing conditions for reopening this critical shipping route.

Bitcoin's recent price action also reflects a general loss of momentum. The coin remains below important resistance in the $64,000-$65,000 region.

Attention is also beginning to shift toward the Federal Reserve's annual symposium in Jackson Hole later this month, where policymakers may offer hints about the long-term trajectory of interest rates.

Despite the cautious short-term tone, institutional demand provided some support. US spot Bitcoin ETFs recently saw a resumption of inflows, although the flows were uneven.