Bitcoin Surges to $79,000 Following US Inflation Data Release
- Bitcoin (BTC) rose over 3% to reach $79,000 after the August Consumer Price Index (CPI) data was released.
- US core CPI inflation increased by 0.3% month-on-month, exceeding expectations of a 0.2% rise.
- Implied probabilities for a Federal Reserve interest rate hike on September 16 surged to 85%, up from last week’s estimate of 60%.
- The US bond yield reached its highest level since June 2004 before settling at around 5.309% following the CPI report.
- Gasoline prices rose by approximately 3.9% in August, contributing significantly to the overall CPI increase.
The recent inflation data has heightened market volatility and reinforced expectations of tighter monetary policy from the Federal Reserve, which could impact Bitcoin’s performance moving forward.
As Bitcoin climbed back toward $80K, traders reacted to the CPI data amid rising bond yields that may pose challenges for BTC in the near term.(Source)
