Bitcoin consolidates near $79,000 after hotter July inflation data

Bitcoin consolidated near $79,000 after reaching $81,255, its highest level since May 11, before falling roughly $3,000 as July Personal Consumption Expenditures inflation rose 3.7% year over year, above the 3.6% forecast. The cryptocurrency traded between $77,600 and $79,200, with 24-hour volume down 35%, and was quoted at $78,636.17, down 0.26%, at 9:17 p.m. EDT. Profit-taking, a stronger dollar and reduced expectations for Federal Reserve easing have kept bitcoin below $80,000, although the Crypto Fear & Greed Index remains in the Greed category at 74. About $6.4 billion to $6.44 billion of bitcoin options, representing roughly 81,700 Deribit contracts, expire Friday, August 28, at 08:00 UTC, with call exposure concentrated at the $75,000 and $80,000 strikes. High leverage, $140.9 billion in total open interest, declining bitcoin open interest and nearly $260 million in 24-hour liquidations add downside and short-squeeze risks. Traders are also watching Nvidia’s results, possible U.S.-Iran ceasefire reports, Warsh’s first Jackson Hole keynote as Fed chair and the Federal Reserve’s September 16 decision. U.S. spot bitcoin and ether ETFs attracted $2.6 billion last week, their strongest week since October 2025, while shrinking exchange supply has increased price sensitivity.

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