Bitcoin spikes toward $80K as US CPI data delivers new 22-year high in bond yields
Bitcoin rose back to about $79,000 after August US CPI came in mostly as expected at 3.4% year over year. BTC first dropped to around $76,000, then rebounded more than 3%, mirroring a recovery in US stocks. The S&P 500 and Nasdaq also turned higher after a weak open. Inflation pressure was driven partly by energy, with gasoline up 3.9% and energy up 2.1% in August. Core CPI rose 0.3%, slightly above forecasts. Treasury yields swung sharply, and the 30-year yield briefly hit its highest level since 2004 before easing. Markets increased bets that the Fed will hike rates by 0.25% at its Sept. 16 meeting, with odds rising to 85%. Analysts warned that higher yields and a 5% risk-free rate could act as a headwind for Bitcoin, even if longer-term liquidity support later helps.
