US Inflation Data and Treasury Pressure Weigh on Bitcoin
The US inflation data released on Friday showed that the Consumer Price Index (CPI) rose 0.4% in August, accelerating from a 0.1% increase in July.
Core CPI, which excludes volatile food and energy prices, rose 0.3% in August after increasing 0.2% in July.
The inflation figures could strengthen the case for a September rate hike, reinforcing the risk that monetary policy remains restrictive.
CoinShares noted that this outcome would present a near-term headwind for Bitcoin, particularly following the top crypto's recent resistance as it attempts to move above $80,000.
The firm added that a sustained break above that level would require softer economic data, a more dovish shift from the Fed, or another notable policy catalyst.
Despite the persistent inflation pressures, the BTC price briefly rose above $79,000 after the inflation print, then retraced to near $77,000.
The Crypto market responded positively, with Ethereum (ETH) climbing above $2,600 for the first time since January before settling near $2,540.