Cash-Funded Rally: $2B Surge Erases Leverage, Supports Bitcoin

A $2 billion influx of cash into US-traded Bitcoin spot ETFs has been credited with erasing speculative leverage from futures markets, supporting Bitcoin's resilience in the face of a key inflation reading.

The PCE inflation report released on August 26 showed that headline and core readings remained above the Fed's target at 3.7% and 3.3%, respectively. This led to an increase in the odds of a September rate hike to roughly 44% from 36%. However, Bitcoin continued to trade near its rally highs, reaching an intraday high of $79,251.60.

Ryan Lee, chief analyst at Bitget Research, noted that the inflation reading was 'in-line' but not 'harmless', leaving the existing policy debate largely intact and settling little.