Bitcoin rises toward $80,000 after US CPI data
Bitcoin price rebounds above $79,000 as inflation matches expectations Fed hike odds rise, but BTC recovery and easing yields could draw traders in
Bitcoin briefly moved back above $79,000 after US inflation data came in largely as expected, while US stocks also turned higher. The August CPI report showed headline inflation at 3.4% year over year, with core CPI up 0.3% month over month, slightly above forecasts.
The price move followed a volatile session in which BTC first fell to around $76,000 before recovering. At the same time, the 30year US Treasury yield reached its highest level since June 2004 before easing, reflecting shifting expectations for Federal Reserve policy.
Traders increased bets on a possible 0.25% rate hike at the Fed's Sept. 16 meeting, with CME FedWatch data showing those odds rising to 85% from 60% a week earlier. Analysts said higher yields and tighter policy expectations could remain a headwind for Bitcoin in the near term, even as liquidity conditions continue to evolve.