Bitcoin Stalls Near $77,300 as Inflation Looms Over Weekend

Bitcoin maintained its value near $77,300 on Saturday, September 12, as it approached the end of the weekend. This left the largest U.S. spot-Bitcoin fund, iShares Bitcoin Trust (IBIT), with little room to catch up if the cryptocurrency holds steady through Monday's opening.

The price of Bitcoin fluctuated between $76,850 and $77,948.84 in a 24-hour period, according to Coinbase Exchange's live BTC-USD feed. Kraken's independent quote was $77,348.70, a difference of less than $4 from the Coinbase price.

Friday's inflation report had a significant impact on Bitcoin's value, causing it to surge as high as $79,852.22 and then drop to as low as $76,850. Although buyers were initially willing to chase the initial move above $80,000, they ultimately proved unwilling to establish a new range above that round number.

The macroeconomic backdrop remains challenging for Bitcoin, which pays no income. The August consumer price index (CPI) rose 0.4% from July and 3.4% from a year earlier, while core prices increased 0.3% on the month and 2.4% over 12 months. The 10-year Treasury yield ended Friday at 4.96%, keeping the opportunity cost of holding Bitcoin high.

The Federal Open Market Committee (FOMC) meeting on September 15-16 will provide a significant test for Bitcoin, with a policy statement and new economic projections due Wednesday. A break below $76,030 would indicate that Friday's rebound merely delayed a repricing to higher real-rate risk.