Bitcoin price experienced a rebound, briefly surpassing $79,000 after US inflation data for August met market expectations. The Consumer Price Index rose 3.4% year-on-year, while core CPI increased by 0.3%. Following an initial dip to $76,000, the cryptocurrency gained over 3% during the session.
The inflation report influenced broader financial markets, with the S&P 500 rising 1% and the Nasdaq Composite gaining 1.1%. US 30-year bond yields reached their highest levels since June 2004 before settling at 5.309%. Energy costs were a significant factor, as gasoline prices rose 3.9% in August.
Market participants have increased bets on a Federal Reserve interest rate hike of 0.25% at the upcoming September 16 meeting. According to the CME Group FedWatch Tool, the probability of this outcome rose to 85%, compared to 60% one week prior. Current rates remain in the 3.50–3.75% range.
Analysts at QCP Capital noted that rising yields create a challenging environment for Bitcoin, as a 5% risk-free rate competes with digital assets. While Bitcoin surged 25% in August following US Treasury debt buyback announcements, experts suggest that further market liquidity from these operations is necessary to provide structural support.
