Bitcoin Faces Crucial Week as US Inflation Data Meets Fed Decision
Bitcoin traded near $79,500 on Monday after stronger August employment data increased September rate-hike expectations sharply. The cryptocurrency's price reached an intraday high of nearly $80,494 before retreating to around $79,120 during holiday-thinned trading.
The U.S. jobs report showed that nonfarm payrolls increased by 162,000 in August, exceeding the average monthly gain of 31,000 recorded over the preceding year. The unemployment rate remained at 4.1%, and traders immediately increased their estimated probability of a September rate increase to approximately 58%.
On Thursday, investors will be watching the release of the August Producer Price Index (PPI) inflation data. Economists expect headline producer prices to rise 0.4% from July, while core PPI is forecast to increase 0.3%. An upside surprise could reinforce concerns that higher energy and input costs are spreading through the economy.
The Federal Reserve's policy meeting on September 15-16 will be a key event for Bitcoin, with traders closely watching the central bank's decision on interest rates. The Treasury auction of reopened 10-year notes on Wednesday may also impact bond yields and borrowing costs.