Bitcoin rises to $79,000 after hotter core CPI
Bitcoin jumped back to $79,000 and Ethereum reached $2,600 after August core CPI came in at 0.3% month over month, versus a 0.2% estimate. Traders also repriced September Fed hike odds higher.
Bitcoin (CRYPTO: BTC) climbed back to $79,000 Friday, reversing a nearly 4% move in two hours after August CPI data lifted September rate hike odds to 80% on Polymarket. Ethereum (CRYPTO: ETH) rose to $2,600, up 7% on the day. 4% year over year, both matching estimates. 2% estimate, marking its biggest monthly increase since April and helping shift market expectations toward a hike.
Polymarket traders now price a September 25-basis-point hike at roughly 80%, with more than $113 million in volume on the contract. 4% a week ago. Odds started the week near 50%, moved to 61% on strong payrolls, rose to 70% after Thursday’s hot PPI and crossed 80% on Friday’s core CPI miss. 79 and showing improving momentum without overbought conditions.
A move through $80,000 would open the way to the $82,200 to $82,500 resistance area, while a loss of the 20-day EMA would bring $73,000 back into view as the next support level. 3% core print, which landed on the hawkish side of the threshold cited by Fed Governor Christopher Waller last week. Traders also appeared to be focusing on the Fed’s decision scheduled for September 16 and on whether Warsh signals further hikes or signals a pause. The article said the dip swept a key level and that the correction is over, adding that the recovery may reflect a market that has already priced in the rate hike.
It also quoted a view that new highs may be ahead for Bitcoin.