According to a CoinShares report from September 11, the latest Consumer Price Index data shows headline inflation at 3.4% year-over-year and 0.4% month-over-month. Core CPI rose 0.3% month-over-month, exceeding the 0.2% forecast by Wall Street.
The higher core inflation reading has increased the likelihood of a Federal Reserve rate hike at the meeting scheduled for September 15–16. CoinShares notes that this environment of restrictive monetary policy creates pressure on digital assets.
Following the inflation data release, Bitcoin has been trading in the $77 000 to $78 000 range. Previously, the asset failed to sustain price levels above $80 000.
Digital asset investment products experienced $243 million in net outflows over the week following the CPI report. This follows a previous week that saw $1.3 billion in inflows, representing a swing of over $1.5 billion in investor sentiment.
