Crypto
Bitcoin Shrugs off US Inflation Data with 2% Price Surge
Despite hot US inflation data, Bitcoin's price surged on Friday, rising by 2% over a 24-hour period to trade at close to $78,749.
This increase came despite news that U.S. consumer prices accelerated in August, which reinforced expectations of an interest rate hike next week.
According to the Federal Reserve's FedWatch tool, traders believe there is an 85% chance that interest rates will be higher by next week.
Higher inflation typically means a rise in interest rates, which could curb Bitcoin's price growth. However, the cryptocurrency has historically performed well in low-interest-rate environments due to increased liquidity.