US Inflation Data Takes Center Stage as Bitcoin's Rally Hits Resistance

Bitcoin's recent rally has stalled amid low trading volumes due to the US Labor Day holiday. The largest cryptocurrency had reached an almost four-month high of $81.4K last week, but is now below $80K.

The stronger-than-expected US jobs data on Friday lifted Treasury yields and the US dollar, limiting gains in rate-sensitive assets like gold and Bitcoin.

With inflation consistently above the 2% target, the Fed's focus remains on taming inflation. This week's PPI and CPI data will be crucial in determining the likelihood of a Fed rate hike next week.

Market expectations currently price in a 60% probability of a 25 basis point rate hike at the September meeting, up from 50% before the nonfarm payroll report.