Bitcoin Rises as Markets Digest Inflation Data Ahead of Fed Rate Decision — SkimNews
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- August CPI rose 3.4% year-over-year and 0.4% month-over-month — both matching consensus — but core CPI's monthly reading of 0.3% came in hotter than the 0.2% economists forecast, per Bureau of Labor Statistics data released Friday.
- Bitcoin opened at $76,529, dipped to $76,040 immediately after the CPI print, then reversed to trade near $79,007 — a 3.24% daily gain — approaching the psychologically significant $80,000 mark.
- Ethereum led major altcoins with a 7.48% gain to reclaim $2,611, while Solana climbed 4.53% back above $100 and Zcash surged 23.09% over the past week.
- CME FedWatch prices a 25-basis-point Fed rate hike at roughly 69% probability for the September 15-16 meeting, with Polymarket at 62% and Myriad at 61%, after Chair Kevin Warsh told Jackson Hole the Fed still has "work to do" on inflation.
- A nascent golden cross appeared on Bitcoin's daily chart as the 50-day EMA crossed above the 200-day, though the source flags the signal isn't technically confirmed yet; the RSI sits at 59.7 in bullish territory.
- Spot Bitcoin ETFs continued bleeding with roughly $330.5 million in net outflows on the day, while the Crypto Fear & Greed Index swung from 56 on Thursday to 73 (greed) as price action recovered.
- The volatile session triggered $897.09 million in crypto liquidations, split between $493.85 million in longs and $403.24 million in shorts; open interest in crypto futures rose 1.52% to $429.99 billion.
Why it matters: August's hot 0.3% core monthly CPI print versus the 0.2% economists expected aligns with the 69% CME FedWatch probability of a 25bp Fed hike next week, yet $330.5M still flowed out of spot Bitcoin ETFs despite the 3.24% rally — a reminder that institutional capital hasn't followed retail back in before the Fed's September 15-16 decision.
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