Bitcoin trades below $80,000 as inflation data raises rate-hike concerns

  • Bitcoin retreated below $80,000 after strong US employment data raised rate-hike expectations.
  • Bitcoin previously exceeded $82,000, while QCP Capital identified $77,000-$78,000 as support.
  • US PPI and CPI data are scheduled for release this week, according to analysts.

Bitcoin is trading below $80,000 after retreating from above $82,000 last week as strong US employment data increased expectations of a Federal Reserve interest-rate hike in September. Investors are now focused on the Producer Price Index (PPI) and Consumer Price Index (CPI), whose results could reshape monetary-policy expectations. Analysts say higher Treasury yields and a stronger dollar are increasing pressure on risky assets such as Bitcoin. LMAX Group Market Strategist Joel Kruger said Bitcoin and the broader cryptocurrency market have remained resilient despite conditions that could prompt a correction, although the August rally has pushed Bitcoin toward overbought territory. He also pointed to higher Treasury yields and oil prices following recent tensions between the US and Iran, saying cryptocurrencies had absorbed those pressures without significant technical damage. QCP Capital identified $80,000 to $82,000 as a critical resistance zone for Bitcoin, warning that failure to break above it could intensify selling. The firm sees $77,000 to $78,000 as an important support range and said spot Bitcoin ETF flows are volatile as investors adjust positions ahead of this week's economic data. Higher-than-expected inflation could strengthen the case for rate hikes and add further downward pressure on Bitcoin. This is not investment advice.

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