Bitcoin spikes toward $80K as US CPI data delivers new 22-year high in bond yields — SkimNews
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- Bitcoin dropped to $76,000 then reversed, gaining more than 3% on Friday after August CPI came in at 3.4% year-on-year
- S&P 500 gained 1% and the Nasdaq Composite rose 1.1% as US equities mirrored BTC's intraday reversal, according to Cointelegraph's TradingView data
- US 30-year Treasury yield whipsawed to its highest level since June 2004 before settling at 5.309%, a move trading resource The Kobeissi Letter called 'a nervous market'
- Bureau of Labor Statistics reported gasoline rose 3.9% in August, accounting for over one-third of the monthly all-items increase, while core CPI came in 0.1% above expectations at 0.3%
- CME Group's FedWatch Tool showed odds of a 25-basis-point Fed rate hike at the Sept. 16 FOMC meeting jumping to 85%, up from 60% a week earlier
- Fed Governor Christopher Waller said he'd hold rates in the current 3.50–3.75% range if there were 'some signs of disinflation,' arguing a single 25bp hike 'is not going to bring CPI down to 2%'
- QCP Capital warned rising US yields create the 'worst mix for Bitcoin,' with a competing 5% risk-free rate undercutting the Treasury-liquidity narrative that drove BTC from $63,000 to $82,000 in late August
Why it matters: The CPI print cemented an 85% market-implied probability of a 25bp Fed hike on September 16, up from 60% a week earlier. With 30-year yields at 5.309% and gasoline driving one-third of August's price increase, QCP Capital argues Bitcoin's late-August rally from $63K to $82K is missing the nominal-growth catalyst that typically justifies holding crypto over 5% risk-free Treasuries.
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