The Bureau of Labor Statistics reported that the August Consumer Price Index rose 3.4% year over year and 0.4% month over month. Core inflation reached 2.4% annually, the lowest level since 2021, though the monthly core reading of 0.3% exceeded the 0.2% forecast.
Market participants are monitoring these figures ahead of the Federal Reserve meeting scheduled for September 15-16. CME FedWatch indicates a 69% probability of a 25-basis-point rate hike, while Polymarket and Myriad estimate the likelihood at 62% and 61% respectively.
Bitcoin recovered from an initial dip to trade near $79,007, marking a 3.24% daily increase. The total cryptocurrency market capitalization rose toward $2.7 trillion, while the Crypto Fear and Greed Index climbed to 73, indicating a shift into greed territory.
Institutional activity remains mixed, with spot Bitcoin ETFs recording a net outflow of approximately $330.5 million. Meanwhile, open interest in crypto futures increased by 1.52% to $429.99 billion, and 24-hour trading volume grew by 2.27% to $877.11 billion.
Technical indicators show Bitcoin's 50-day exponential moving average crossing above the 200-day average, forming a golden cross. The Relative Strength Index stands at 59.7, and analysts identify the support zone between $73,986 and $75,569.
