Bitcoin Defies Inflation Data with 2% Jump
The Bitcoin price rose on Friday despite hot US inflation data revealing that consumer prices accelerated in August.
According to recent figures, the biggest cryptocurrency by market cap was trading for close to $78,749 after jumping 2% over a 24-hour period. At one point on Friday morning in New York, bitcoin reached as high as $79,607.
The consumer price index, excluding food and energy, climbed 0.3% in August from a month earlier, which was higher than expected. This typically means the Federal Reserve will raise interest rates, which could stop Bitcoin's price climbing higher.
However, traders think there is an 85% chance of interest rate hikes by next week, according to CME's FedWatch tool. The Federal Reserve will meet next week and reveal what it will do with borrowing costs.