Bitcoin, Ether Rebound After August CPI Matches Estimates as Fed Rate Path View Holds

Forecast Trend Report by Period

Bitcoin and Ether rebounded after the U.S. consumer price index for August came in broadly in line with market expectations, leaving the outlook for the Federal Reserve’s rate path largely intact.

The Block reported on September 11 that Bitcoin briefly approached $79,000 after the CPI release before trading around $77,800. Ether also moved above $2,500.

The U.S. Labor Department said August CPI rose 0.4% from a month earlier and 3.4% from a year earlier. Higher energy prices lifted headline inflation, but markets largely viewed the reading as insufficient to meaningfully alter expectations for the Fed’s September policy outlook.

Matt Mena, senior digital assets strategist at 21Shares, said Bitcoin has posted an average 2.13% gain over 30 days in past instances when core CPI came in above expectations. If the Fed leaves rates unchanged, the current uptrend could continue, he said.