Bitcoin and Ethereum Prices Under Pressure Ahead of Inflation Data and Central Bank Decisions

Bitcoin (BTC) and Ethereum (ETH) prices are under pressure due to upcoming inflation data and central bank decisions. The US nonfarm payrolls report showed 162,000 jobs were added in August, strengthening expectations that the Federal Reserve could raise interest rates at its September 16 FOMC meeting.

The prediction markets currently show a 50% probability of a 25-basis-point hike and a 50% chance that rates remain unchanged. The US CPI report due on September 11 is also being closely watched, with economists expecting inflation to remain at 3.4%. Meanwhile, markets are pricing in a 25-basis-point European Central Bank rate hike on September 10.

Hawkish monetary policy could weigh further on Bitcoin and Ethereum as higher rates typically reduce demand for risk assets. However, institutional crypto demand remains resilient, with Bitcoin spot ETFs recording $174 million in inflows on September 4, while Ethereum ETFs attracted $26 million.