Bitcoin Rises as Markets Digest Inflation Data Ahead of Fed Rate Decision
U.S. CPI was mostly in line with expectations: headline inflation held at 3.4% year over year and rose 0.4% month over month. Core CPI cooled to 2.4% annually, its lowest since 2021, but the monthly core gain of 0.3% was hotter than expected and briefly pressured risk assets. Bitcoin dipped after the release, then rebounded toward $79,000 as traders focused on the Fed’s upcoming meeting. Markets still lean toward a rate hike, with futures and prediction markets pricing a roughly 61%–69% chance of a 25-basis-point move. Crypto broadly recovered, led by Ethereum and Solana, while total market value moved back toward $2.7 trillion. Sentiment improved sharply, though Bitcoin still dominates over altcoins. ETF flows remained negative, suggesting limited fresh institutional buying. Derivatives activity and liquidations rose during the volatile session. Technically, Bitcoin is near a possible golden cross, RSI remains constructive, and key support sits around $74,000–$75,600, with $82,281 as the next major resistance.
