Fed Rate Hike Odds Soar as Bitcoin Rallies Near $80K

Bitcoin and altcoins rallied after the August Consumer Price Index print showed inflation firming but still within projections.

Data showed month-over-month CPI rose by 0.4% in August, and 3.4% year-over-year. Stripping out energy and food components, Core CPI rose by 0.3%, which was marginally above expectations.

Rate hike odds rose from 58% to about 88% following the print, reinforcing traders' view that the US Federal Reserve will hike rates when the FOMC concludes its September 15-16 meeting.

Analysts remain at odds on the trajectory of US inflation, with some viewing the August CPI data as bearish given factors like the prolonged US-Israeli war with Iran and oil prices spiking above $100.