Treasury Buybacks Fail, Bitcoin's Near-Term Upside Capped by CPI

The latest Consumer Price Index (CPI) report has capped Bitcoin's near-term upside. The headline inflation rate came in line with expectations, while core inflation was slightly higher than anticipated.

This data raises the probability of a September interest rate hike by the Federal Reserve and reinforces the risk that policy will stay restrictive for longer.

The market had been positioning for softer inflation as one of the catalysts for a sustained break above $80k, but this print did not deliver it.

As a result, flows turned with sentiment, and after around $1.3B of inflows into digital asset investment products last week, this week has seen $243M of outflows so far.