Bitcoin Price Soars Near $80K Amid US CPI Data
The Bitcoin price surged near $80,000 on Friday after the US Bureau of Labor Statistics released August Consumer Price Index (CPI) data that matched economists' projections.
According to Bitstamp data, Bitcoin briefly reclaimed $79,837, putting it on course to breach $80,000. However, before this spike, the top cryptocurrency had been reeling from bearish sentiment sparked by hotter-than-expected Producer Price Index (PPI) data released less than 24 hours earlier.
The price fluctuated significantly in the last 24 hours, with a flash crash sending it tumbling to $76,040 and subsequent rallies pushing it past $79,800. At one point, Bitcoin hovered above $77,800, leaving it with a daily gain of 1% and a market capitalization near $1.57 trillion.
Despite the CPI matching expectations, prediction markets saw an immediate increase in odds of the Federal Reserve increasing interest rates by 25 basis points to 82%. Economist Peter Schiff stated that 'this should all but ensure a hike' and predicted rising inflation pressures.