Inflation Data to Decide BTC's Next Move as Fed Rate Hike Expectations Soar
The US jobs report released last Friday sent risk-on assets into a tailspin, pushing expectations for an upcoming Fed rate hike even higher. Bitcoin ($79,799.00 · Live), still reeling from its dip following the hawkish speech by Fed Chair Kevin Warsh at the end of August, is now facing a crucial week ahead of the FOMC meeting scheduled for September 15-16.
The coming days will be pivotal in determining whether BTC's recent recovery continues or if it faces another significant correction. On Thursday, the release of the August PPI data, which measures inflation at the producer level, is expected to show a 0.4% month-over-month increase in headline PPI and a 0.3% rise in core PPI.
A hotter reading could further fuel expectations that inflationary pressure is rebuilding, particularly with oil prices remaining elevated due to the conflict in the Middle East. Friday's CPI report will be even more crucial, as it is estimated to point to inflation remaining at around 3.3%-3.4% annually.