CPI Data Sends Crypto Markets Soaring Amid Fed Hike Odds

Crypto markets staged a comeback on September 11 after August's Consumer Price Index (CPI) data matched expectations, with Bitcoin reclaiming $79,000. The CPI report showed headline inflation rose 0.4% in August and annual core inflation eased to 2.4%, both matching forecasts.

Despite firmer monthly core CPI, which increased by 0.3%, the overall picture did not indicate further tightening after September's Federal Reserve meeting. The reaction in Treasury yields and the dollar reflected this nuanced view.

Ethereum led large caps with a 5% rise, outperforming Bitcoin's 2% gain, while XRP, Solana, and Zcash also moved higher. This broad rally suggests traders were willing to take on more risk after the CPI release.