Bitcoin Surges Past $79K as Inflation Data Sparks Rate Hike Fears

The price of Bitcoin (BTC) surged past $79,000 after the release of US Consumer Price Index figures that largely aligned with market forecasts. The year-over-year core inflation metric decelerated to 2.4%, marking its weakest reading in 66 months.

This development elevated the implied probability of a Federal Reserve rate increase at the September 16 policy meeting to 85%, climbing from 60% just seven days prior, based on CME Group's FedWatch Tool data.

However, technical analysts suggest that a sustained break above $80,000 could trigger moves toward $82,000 and $84,000. Ethereum-focused ETFs presented a contrasting narrative, attracting $216 million in net capital, with BlackRock's ETHA dominating with $149 million in contributions.