Bitcoin Surges to $80K as US CPI Data Confirms Expectations

Bitcoin surged to nearly $80,000 on Friday after US inflation data largely met expectations. The Consumer Price Index (CPI) rose 0.3% month-over-month, surpassing forecasts of a 0.2% increase.

The Federal Reserve is now likely to raise interest rates by 0.25% at its September 16 meeting, with implied probabilities rising to 85%, up from 60% the previous week.

QCP Capital warned that Bitcoin bulls have little to look forward to due to high bond yields, which are expected to rise further as the Fed tightens policy. The analysis noted that a competing 5% risk-free rate without nominal growth would directly undercut the narrative supporting Bitcoin's price increase in August.