Bitcoin Surges on US Inflation Data, But Analyst Sees Dip Ahead

Bitcoin briefly surged past $79,000 on Friday after US inflation data for August came in broadly in line with forecasts. The Consumer Price Index rose 0.4% from July and 3.4% year-on-year, matching economist expectations.

The initial dip to $76,000 was quickly reversed, gaining over 3% on the day. US equities followed a similar pattern, with the S&P 500 rising 1% and the Nasdaq gaining 1.1%, both recovering from weak session opens.

Gasoline prices rose 3.9% in August, accounting for more than a third of the total CPI increase. Core CPI, which strips out food and energy, came in at 0.3% for the month, one tick above the 0.2% forecast.

Analyst Ted Pillows flagged concerns about the quality of Bitcoin's recovery, noting that the daily MACD continues to trend downward and Friday's pump was not backed by strong spot demand.