Bitcoin holds near $80,000 as U.S.-Iran attacks raise volatility ahead of inflation data

  • U.S. forces struck three Iranian oil tankers after missile attacks on two Navy warships.
  • Bitcoin traded around $79,800, up less than 1% on the day.
  • Polymarket showed 51% odds of a hold and 50% odds of a September hike.

Bitcoin traded near $80,000 after the U.S. Central Command said U.S. forces struck three Iranian oil tankers in retaliation for Iran's missile attacks on two U.S. Navy warships. BTC was around $79,800, up less than 1% on the day, according to TradingView, showing limited immediate reaction to the latest escalation in the U.S.-Iran war. The cryptocurrency had fallen the previous day after a stronger-than-expected August U.S. jobs report increased expectations of a possible Federal Reserve rate hike at this month's FOMC meeting. Fed Governor Chris Waller has said he currently leans toward leaving rates unchanged, but that the August inflation data could change his view. Investors and crypto traders are now focused on the upcoming CPI and PPI releases. Fed President Beth Hammack has expressed concern about rising inflation, while Fed Chair Kevin Warsh has said officials are prepared to act if inflation does not slow. Polymarket data showed traders almost evenly divided, with a 51% chance of rates remaining unchanged and a 50% chance of a hike at the September meeting. The ECB's rate decision, Apple's product launch and Oracle's earnings are also scheduled during the broader market week.

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