Bitcoin Defies Core Inflation Rise as Markets Anticipate Rate Hike

Bitcoin's price rose to $78,600 on August data, despite core inflation exceeding expectations. The U.S. Federal Reserve is expected to raise interest rates next week, but markets may have already priced in this decision.

Core CPI rose 0.3% monthly, surpassing the forecasted 0.2%. However, Bitcoin gained 1.5% in the last 24 hours. Headline inflation also increased by 0.4% on a monthly basis and 3.4% on an annual basis, both of which were in line with expectations.

Investors may have already anticipated the Fed's decision, as Joel Kruger from LMAX Group stated that 'a significant portion of hawkish expectations may have already been reflected in prices'. If the Fed does not raise interest rates, it could lead to a stronger upward reaction in risky assets.