Bitcoin Rebounds Above $77,000 After August CPI Matches Expectations

  • Bitcoin fell by roughly $1,000 after the August CPI release before recovering above $77,000.
  • U.S. headline CPI rose 3.4% year over year and 0.4% month over month in August.
  • Core CPI increased 0.3% monthly and 2.4% annually before the Sept. 15-16 Fed meeting.

Bitcoin briefly fell by roughly $1,000 after the U.S. Bureau of Labor Statistics reported that August consumer inflation broadly matched expectations, then rebounded above $77,000. Headline CPI increased 0.4% from July and 3.4% from a year earlier, while core CPI, excluding food and energy, rose 0.3% monthly and 2.4% annually. The monthly core reading was slightly above the 0.2% consensus estimate. The release followed data showing producer prices rose 5.4% year over year, leaving markets focused on the Federal Reserve's Sept. 15-16 policy meeting. Current odds indicate that experts expect a 25-basis-point rate increase.

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