Bitcoin Rises as Markets Digest Inflation Data Ahead of Fed Rate Decision — SkimNews
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- Bitcoin bounced from a post-CPI dip near $76,040 to trade near $79,007, a 3.24% daily gain, after August CPI matched consensus at 3.4% YoY and 0.4% MoM per Bureau of Labor Statistics data
- Core CPI told the split story traders zeroed in on: the annual rate cooled to 2.4% (lowest since 2021) but the monthly reading hit 0.3%, hotter than the 0.2% economists forecast
- Fed rate hike odds climbed after the print, with CME FedWatch pricing a 25bp hike at roughly 69% for the September 15-16 meeting, while Polymarket and Myriad sit lower at 62% and 61% respectively
- Ethereum led the major altcoins higher, jumping 7.48% to reclaim $2,611, while Solana climbed 4.53% back above $100 and Zcash surged 23.09% over the past week
- Bitcoin's chart flashed a nascent golden cross as the 50-day EMA crossed above the 200-day, though the move is not yet technically confirmed and key Fibonacci support sits at the $73,986-$75,569 zone
- Spot Bitcoin ETFs still showed roughly $330.5 million in net outflows on the day, a reminder that the rally has not yet pulled fresh institutional money off the sidelines
- Chair Kevin Warsh used his first Jackson Hole keynote to say the Fed still has 'work to do' on inflation, and three regional Fed presidents already dissented in favor of a July hike
Why it matters: The crypto rebound occurred despite the monthly core CPI running 10 basis points hotter than expected and despite $330.5 million still flowing OUT of spot Bitcoin ETFs — meaning the rally is retail-driven heading into a Fed meeting where hike odds jumped to roughly 69% on the very inflation print that markets are now treating as a green light.
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