Bitcoin Stabilizes Near $79,000 as US Inflation Data Looms

Bitcoin's price hovered around $79,000 as market attention shifted to next week's inflation data in the US. A softer-than-expected Consumer Price Index (CPI) reading could reignite hopes for a rate cut, while a higher-than-anticipated figure would likely maintain the 'higher-for-longer' stance and keep pressure on crypto valuations.

In the past 24 hours, Bitcoin dropped 1.8%, while Ethereum fell 2.3% to $2,452. Among major altcoins, BNB, XRP, Solana, Hyperliquid, Dogecoin, and Cardano declined by 5.4%, with Tron bucking the trend, rising 0.9%. The global crypto market capitalization dipped 1.4% to $2.77 trillion, according to Coingecko.

Riya Sehgal from Delta Exchange noted that crypto markets are sensitive to US monetary policy. Bitcoin surged above $82,000 as expectations of a September rate hike eased and institutional demand returned, but the rally reversed after Friday's jobs data. The market now awaits next week's inflation reading to determine its next move.

Nischal Shetty from WazirX pointed out that global macro conditions remained mixed but broadly supportive for crypto during the past week. Institutional demand strengthened, with ETF products attracting approximately $510 million across four sessions as of September 4.