Bitcoin experienced sharp two-way volatility around the U.S. August Consumer Price Index release, ultimately settling near $77,000 after briefly trading as low as $76,000 and as high as $79,800. The inflation report was broadly in line with expectations, but details triggered a mixed reaction across risk assets.
Headline CPI held at 3.4% year-on-year, while annual core CPI slowed to 2.4%, its lowest reading in 66 months. However, monthly core CPI rose 0.3%, above the 0.2% consensus, and overall month-over-month CPI increased 0.4% — the largest jump since May 2026. Gasoline prices climbed 3.9% in August, accounting for more than a third of the monthly increase, while the broader energy index rose 2.1% amid rising oil prices tied to U.S.-Iran tensions.
The data pushed implied odds of a Federal Reserve rate hike at the September 16 meeting to 85%, up from 60% a week earlier, according to CME Group’s FedWatch Tool. U.S. 30-year bond yields briefly hit their highest level since June 2004 before pulling back to 5.309%. Trading firm QCP Capital called the environment “the worst mix for Bitcoin”, citing a competing 5% risk-free rate without a growth impulse.
BTC initially slumped to a multi-week low of $76,000, then bounced nearly $4,000 to $79,800 before fading back to just over $77,000. Its market cap stood at about $1.550 trillion, with dominance at 58.7%.
Ethereum was the standout gainer during the post-CPI rally, climbing from $2,440 to an eight-month high of $2,670 before easing to around $2,500. Spot Ethereum ETFs recorded $216 million in net inflows, led by BlackRock’s ETHA with $149 million. In contrast, U.S. spot Bitcoin ETFs posted $13.29 million in net outflows on September 11, extending a four-day outflow streak; Morgan Stanley’s MSBT was the only Bitcoin ETF with net inflows.
Among large-cap altcoins, BNB traded above $730, XRP remained below $1.40 despite a 2% daily gain, and SOL defended the $100 level. ZEC and XMR rose 4.8% and 5.3%, with UNI, SKY, XLM, BCH and LTC also higher. Total crypto market capitalization increased about 0.6% to $2.640 trillion.
Technical readings showed Bitcoin’s MACD with a bullish crossover and a positive histogram at 13.86, though both MACD lines remained below zero. The RSI sat at 54.98, indicating neutral momentum. Analysts suggested a confirmed weekly close above $80,000 could open paths toward $82,000 and $84,000, while the current structure pointed to a possible dip.
