Bitcoin Ticks Closer to $80,000 as US Inflation Data Meets Expectations

Bitcoin prices rebounded toward $80,000 on Friday after US inflation data broadly met expectations. The latest Consumer Price Index (CPI) report showed a year-on-year increase of 3.4% in August, with core CPI - which excludes food and energy prices - rising 0.3% month-on-month.

The slight above-expected core reading contributed to the overall inflation increase, driven by rising energy prices, particularly gasoline, which climbed 3.9% during the month. The energy index rose 2.1%, accounting for more than one-third of the monthly increase in the overall CPI.

US stock markets also recovered following the inflation data, with the S&P 500 and Nasdaq Composite up around 1% and 1.1%, respectively. However, bond markets remained volatile, with the US 30-year Treasury yield briefly reaching its highest level since June 2004 before easing to around 5.309%. Higher yields could create additional pressure on risk-sensitive assets such as Bitcoin by making government bonds more attractive to investors.

Federal Reserve officials remain divided over the appropriate policy path, with Governor Christopher Waller indicating that he could support keeping interest rates unchanged if inflation shows signs of cooling. Trading firm QCP Capital warned that rising US Treasury yields could become a headwind for Bitcoin, reducing demand for riskier assets.