Treasury Pressure Could Become Bitcoin's Catalyst Amid Inflation Fears

CoinShares says the latest US inflation data may be bearish for Bitcoin in the short term, but could also create a supportive environment for it over time.

The Consumer Price Index (CPI) rose 0.4% in August, accelerating from a 0.1% increase in July, according to the Bureau of Labor Statistics (BLS). On an annual basis, CPI increased 3.4%, unchanged from the previous month and matching economist expectations.

The firm highlighted that persistent inflation could keep Fed policy restrictive, creating near-term pressure on Bitcoin and limiting a rise above $80,000.

However, CoinShares also noted that failed Treasury efforts to lower long-term yields could trigger stronger intervention and support Bitcoin's outlook. The firm argued that continued pressure on long-term yields could increase calls for more aggressive Treasury intervention, which could strengthen the debasement narrative supporting Bitcoin and Gold if investors interpret larger Treasury purchases as an attempt to suppress borrowing costs without addressing underlying fiscal concerns.

Institutional demand for digital assets has shown signs of caution, with digital asset investment products recording $243 million in outflows this week, despite roughly $1.3 billion of inflows last week.