Cash Surge Fuels Bitcoin's Resilience Amidst Rate Hike Odds
Bitcoin's resilience in recent days can be attributed to a surge of $2 billion in cash inflows, which has effectively wiped out speculative leverage. This is according to Glassnode, a leading provider of on-chain data and analytics.
The PCE inflation reading for July was released on August 26, showing that the headline rate remained at 3.7% and the core rate stayed at 3.3%. These numbers are still above the Fed's target of 2%, which means there is no clear indication of a dovish pivot.
As a result, futures markets responded by increasing the odds of a September rate hike to around 44%, up from 36% before the report. However, this has not had a significant impact on Bitcoin's price, which hit an intraday high of $79,251.60 and is currently trading near $78,000.
Ryan Lee, chief analyst at Bitget Research, noted that 'in-line is not the same as harmless.' He expects Bitcoin's price to continue taking direction from elsewhere, including ETF flows, spot liquidity, and derivatives positioning.