The August U.S. CPI inflation report came in line with expectations, sparking a rebound in the Bitcoin price. However, the market still prices in a Fed rate hike next week, with the odds of a hike rising after the inflation report.
U.S. CPI Comes In At 3.4%, Bitcoin Rebounds
Bureau of Labor Statistics data shows that the Consumer Price Index rose 3.4% year-over-year (YoY) in August, in line with expectations. Month over month (MoM), the U.S. CPI rose 0.4%, also in line with expectations.
Core CPI came in at 2.4% YoY, in line with expectations and its lowest level since 2021. MoM, Core CPI rose 0.3%, above expectations of 0.2%. The CPI report follows yesterday’s PPI release, which came in at 5.4%, above expectations of 5.3%, and the market crashed on the back of that report.
However, Bitcoin has rebounded on the CPI release despite concerns that inflation is still running well above the Fed’s target of 2%. The leading crypto rose from below the psychological $77,000 level and is now trading above $78,000, according to TradingView data.
Other crypto prices are also up on the back of the inflation report. The Ethereum price is back above the psychological $2,500 level, while Solana has reclaimed the psychological $100 level, according to TradingView data.
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Source: https://coingape.com/u-s-cpi-comes-in-line-with-expectations-at-3-4-bitcoin-rises/
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