Failed Treasury Intervention Could Become a Medium-Term Catalyst for Bitcoin
The US inflation data for August revealed that Consumer Price Index (CPI) rose 0.4% from July, and 3.4% on an annual basis.
Bitcoin and other cryptocurrencies saw a brief surge after the release, with Bitcoin briefly rising above $79,000 before retracing to near $77,000.
CoinShares noted that the inflation figures are 'not particularly helpful for Bitcoin' and may strengthen the case for a September rate hike by the Federal Reserve, which could be a headwind for the cryptocurrency.
The firm also highlighted growing pressure in the US Treasury market due to its expanded bond-buyback program failing to lower long-term yields.
Despite this, CoinShares argued that the failure of the Treasury's intervention could become increasingly supportive for Bitcoin over the longer term, as investors may interpret larger Treasury purchases as an attempt to suppress borrowing costs without addressing underlying fiscal concerns.