Bitcoin's Fate Hangs in Balance as Inflation Data Looms

The week ahead is crucial for Bitcoin's next big move as risk-on assets enter their final days before the FOMC meeting on September 15-16.

Last Friday's strong US jobs report and Fed Chair Kevin Warsh's hawkish speech at the end of August have fueled expectations of an upcoming rate hike, putting pressure on BTC.

The inflation data set to be released in the coming days will be key in determining the central bank's next move, with a hotter reading potentially reinforcing expectations of rebuilding inflationary pressure.

A higher-than-expected CPI reading could strengthen the argument for another rate increase and push Treasury yields higher, which may put downward pressure on BTC prices.