Bitcoin Surges Past $79,000 as US Core Inflation Hits 66-Month Low
Bitcoin surged past $79,000 after the US core annual inflation rate dropped to a 66-month low of 2.4%, indicating easing inflation pressures. However, the monthly core Consumer Price Index (CPI) rose 0.3%, higher than expected, increasing the likelihood of a Federal Reserve interest rate hike to 85% before its September 16 meeting.
The price increase was not limited to Bitcoin as Ethereum-focused Exchange-Traded Funds (ETFs) attracted $216 million in inflows, causing Ethereum prices to rise over 8%. In contrast, Bitcoin ETFs saw significant outflows of $13.29 million.
Technical analysts suggest that if Bitcoin can sustain a break above $80,000, it could push the price towards $82,000 and $84,000. However, rising yields and rate hike expectations may limit gains.