Bitcoin Stalls at $78,000 as CPI Data Looms

Bitcoin's price has pulled back to around $78,000 after surging from $63,000 to $82,000 in early September. The cryptocurrency's outlook remains uncertain due to a sharp rise in bond yields, oil prices approaching $100 a barrel, and uncertainty over future Federal Reserve policy.

A key test for cryptocurrencies will be the US Consumer Price Index (CPI) data release on Friday, which could send Bitcoin back below $70,000 if the reading is higher than expected. A softer-than-forecast release would likely help BTC stabilize above $80,000.

The prospect of crypto-friendly regulation in the US appears uncertain as Republicans trail Democrats in polls ahead of the congressional midterm elections.

Despite the rebound, large deposits to spot exchanges have not shown a comparable increase, with CryptoQuant data showing an average inflow of around 4,670 BTC over the past seven days. The price recovery has not coincided with unusually elevated large-deposit activity.