Bitcoin Rebounds as August CPI Matches Expectations

The US consumer price index for August came in broadly in line with market expectations, helping Bitcoin and Ether rebound. The Federal Reserve's rate path outlook remained largely unchanged after the release of the CPI numbers. Analysts said that the durability of the current Bitcoin uptrend could hinge on core CPI and whether the Fed holds rates steady.

Matt Mena, senior digital assets strategist at 21Shares, noted that in past instances when core CPI came in above expectations, Bitcoin has posted an average 2.13% gain over 30 days. He believes that if the Fed leaves rates unchanged, the current uptrend could continue.

However, some analysts cautioned that a stronger-than-expected core inflation reading could push rate expectations in a more hawkish direction again. Solana also extended its gains, with SOL exchange-traded funds recording over $500 million in net inflows this year and the network handling over 5 billion transactions last month.