Crypto
US Inflation Boosts Fed Rate Hike Bets, Sinks Gold and Bitcoin
The US inflation rate rose more than expected in August, causing gold and Bitcoin prices to fall. The data showed that producer prices increased by 0.4% in August, pushing up Treasury yields and boosting bets on a Federal Reserve rate hike.
The 10-year Treasury yield hit its highest level since October 2023, making bonds more attractive compared to non-yielding assets like gold and Bitcoin. As a result, the price of gold dropped over 1% and Bitcoin also declined.
Investors are now waiting for the US Consumer Price Index report, which could further influence Fed rate hike expectations and market movements.