Bitcoin Rises as Markets React to Inflation Data Ahead of Fed Rate Decision
U.S. inflation data released on September 11 showed mixed results with the core monthly reading higher than expected, but overall figures aligned with forecasts. Bitcoin initially dipped in response before rebounding toward $79,000 ahead of the Federal Reserve's upcoming rate decision scheduled for September 15-16. The Consumer Price Index (CPI) rose by 3.4% year-over-year and 0.4% month-over-month, while core CPI cooled to an annual rate of 2.4%. However, the monthly core reading came in hotter than anticipated at 0.3%, drawing attention from markets. Ethereum led gains among major cryptocurrencies with a rise of over 7%, followed by Solana and Zcash. The broader crypto market capitalization climbed back toward $2.7 trillion as sentiment improved significantly, reflected in the Crypto Fear & Greed Index moving into 'greed' territory. Despite this rally, spot Bitcoin ETFs continued to show net outflows, indicating a lack of fresh institutional investment. Derivatives activity surged alongside rising prices with open interest and trading volume increasing notably. The price action also triggered substantial liquidations in futures markets.
Tickers: $HSDT
Topics: Bitcoin Ethereum Federal Reserve Policy Inflation Data Solana