Bitcoin (BTC) rebounded toward $79,000 after mixed U.S. inflation data left Fed hike odds elevated, while a fresh golden cross added support to the broader crypto rally.
Key Points:
- August CPI rose 3.4% annually and 0.4% monthly, while core inflation slowed to 2.4% but exceeded forecasts on a monthly basis.
- Bitcoin recovered after an initial drop, while Ethereum, Solana and the broader crypto market moved higher before the Fed’s Sept. 15-16 meeting.
- A fresh Bitcoin golden cross strengthened the technical picture, though ETF outflows and major resistance levels remain obstacles.
Bitcoin Inflation Data
The U.S. Consumer Price Index increased 3.4% from a year earlier and 0.4% from July, matching consensus estimates in data released Friday by the Bureau of Labor Statistics. The annual headline rate was unchanged from July.
Core CPI, which excludes food and energy, slowed to 2.4% annually from 2.5%, its lowest level since 2021, but the monthly reading reached 0.3% against a 0.2% forecast. Bitcoin initially fell toward $76,040 after the release before reversing, climbing as high as $79,837 and trading near $79,007 later in the session. The move put $80,000 back in focus.
The rally spread across major tokens, with Ethereum (ETH) up 7.48% to $2,611, Solana (SOL) gaining 4.53% above $100, and Zcash (ZEC) rising 4.71% on the day and 23.09% over the week.
Also Read: Ethereum Faces $2,438 Support Test While EIP-8288 Stays In Draft
Warsh Fed Outlook
The inflation report arrived five days before the Fed’s Sept. 15-16 meeting, with CME Group pricing roughly 69% odds of a 25-basis-point hike, compared with 62% on Polymarket and 61% on Myriad. The decision remains a key near-term risk.
Fed Chair Kevin Warsh has said policymakers still have “work to do” on inflation, while three regional Fed presidents had already favored a rate increase at the July meeting. Crypto sentiment nevertheless improved, with market capitalization approaching $2.7 trillion and the Fear & Greed Index jumping to 73 from 56. The Altcoin Season Index stood at 38.
Spot Bitcoin ETFs still recorded about $330.5 million in net outflows, while crypto futures open interest rose 1.52% to $429.99 billion and 24-hour derivatives volume increased 2.27% to $877.11 billion. Liquidations reached $897.09 million, including $493.85 million in longs and $403.24 million in shorts.
Bitcoin’s 50-day exponential moving average also crossed above its 200-day average, forming an early golden cross, while RSI stood at 59.7 and ADX remained in the 40s. Confirmation is still limited.
The current setup follows Bitcoin’s summer advance from $68,858 to a late-August high of $82,281, leaving the $73,986-$75,569 retracement zone as key support before another attempt at the August peak.
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