Traders and investors are closely monitoring upcoming US economic data releases, particularly the Producer Price Index (PPI) on September 10 and Consumer Price Index (CPI) on September 11, amid persistent inflation concerns. These reports are expected to significantly influence Federal Reserve policy decisions, with markets pricing in a 100% probability of a rate cut at the mid-September meeting—90% odds for a 25 basis point cut and 10% for a 50 basis point cut.
Key cryptocurrencies including Bitcoin (BTC), Ethereum (ETH), and XRP face heightened liquidation risks due to potential market reactions to inflation data. Historical trends indicate that persistent inflation has previously led to substantial liquidations in digital assets. Analysts like Ian Lyngen of BMO Capital Markets warn that sticky services inflation could limit the Fed's willingness to signal future rate cuts, impacting market sentiment.
Institutional flows show a divergence: US spot Bitcoin ETFs saw $246.42 million in net inflows last week, while Ethereum ETFs experienced record outflows of $787.74 million in early September. Additionally, Tuesday's BLS jobs revision—expected to show 700,000–800,000 fewer jobs than initially reported—could further influence Fed policy and crypto market dynamics. Bitcoin's price held near $112,000 as markets awaited clarity, with softer inflation data likely reinforcing dovish Fed expectations and upside surprises potentially tempering optimism.