U.S. CPI data lifts crypto market as Bitcoin nears $80,000
CPI numbers released
The U.S. Bureau of Labor Statistics reported that the Consumer Price Index rose 3.4% year‑over‑year and 0.4% month‑over‑month, both in line with analysts’ expectations. Core CPI, which excludes food and energy, fell to 2.4% annually – its lowest level since 2021 – but rose 0.3% month‑over‑month, slightly above the 0.2% forecast.
Crypto market reacts positively
After a brief dip, Bitcoin recovered and traded near $79,000, up about 3% for the day. Ethereum rose 7.5% to around $2,610, and Solana gained 4.5% to stay above $100. Total crypto market capitalization moved back toward $2.7 trillion. The Crypto Fear & Greed Index jumped to 73, indicating a “greed” sentiment.
Fed rate‑decision outlook
The CPI report arrives five days before the Federal Reserve’s September 15‑16 meeting. Market‑based odds suggest a 25‑basis‑point rate hike is about 69% likely according to CME FedWatch, with slightly lower estimates from Polymarket (62%) and Myriad (61%).
Bitcoin technical signal
Bitcoin’s 50‑day exponential moving average crossed above its 200‑day average, a pattern known as a “golden cross,” which many traders view as a bullish sign. The Relative Strength Index is at 59.7, below the overbought threshold of 70.
Key points
- CPI: 3.4% YoY, 0.4% MoM; Core CPI: 2.4% YoY, 0.3% MoM.
- Bitcoin near $79k, up 3% after initial dip.
- Ethereum up 7.5%, Solana up 4.5%.
- Market cap ~ $2.7 trillion; Fear & Greed Index 73.
- Fed hike odds ~ 60‑70% according to futures markets.
- Bitcoin shows a golden cross and RSI 59.7.
What is confirmed
The CPI figures and the core CPI annual rate are official data from the Bureau of Labor Statistics. Bitcoin, Ethereum, and Solana price moves are recorded by market data providers.
What remains unclear
Whether the Fed will raise rates at its September meeting is still uncertain; market probabilities differ slightly. The long‑term impact of the CPI data on crypto prices cannot be predicted.
Why it matters
Inflation data influences the Fed’s monetary policy, which in turn affects risk‑on assets like cryptocurrencies. A bullish technical pattern for Bitcoin may attract further trader interest.
Next steps
Investors will watch the Fed’s September decision for clues on future interest‑rate moves. Crypto markets may react to the outcome.
