Bitcoin (BTC) and ether (ETH) rose after the latest U.S. inflation data, with analysts saying the largely in-line CPI print did little to alter expectations for the Federal Reserve's rate path and left the broader crypto rally intact.
Bitcoin's price nearly touched $79,000 before settling around $77,800, and ether's price rose above $2,500 as the Consumer Price Index rose 0.4% in August, bringing the 12-month inflation rate to 3.4%, according to the U.S. Bureau of Labor Statistics. Energy prices were a notable driver, with gasoline prices rising more than 25% year over year.
The data gave crypto markets little new information to price into the Fed's September decision, analysts said, leaving Bitcoin and other digital assets more dependent on underlying demand and broader financial conditions than on the CPI print itself.
"The situation does not look grim as historically, BTC has returned an average of +2.13% over the 30 days following a hotter-than-expected core CPI print, reinforcing the case that the uptrend continues if the Fed holds rates steady," said Matt Mena, senior crypto research strategist at 21Shares.
Bitcoin (BTC), Ether (ETH) price performance 90-day chart. Source: The Block/CryptoCompare
