Bitcoin has strengthened near $80,000 following inflation data and positive institutional demand, with a 21Shares strategist suggesting conditions could support a move toward $100,000 during the fourth quarter.
The Bureau of Labor Statistics released August Producer Price Index data on September 10, showing final demand rose 0.4% monthly and 5.4% annually. Energy prices drove much of the pressure, with final-demand energy prices increasing 4.2% during August, including a 24.1% surge in diesel fuel. Final-demand goods prices advanced 1.1%, while services prices increased 0.1%.
Matt Mena, senior crypto research strategist at 21Shares, characterized the PPI reading as slightly hotter than expected but noted that markets had largely anticipated the result. He identified $77,000 as a support level and $82,000 as a near-term target, with a potential recovery above $80,000 described as increasingly plausible.
Institutional Demand Supports Recovery
U.S. spot bitcoin ETFs attracted approximately $603.3 million during the first six trading sessions of September. Bitcoin ETF inflows accounted for approximately 79% of total crypto ETF flows during the week ended September 4, when spot crypto ETFs attracted $1.24 billion overall.
The month recorded two consecutive sessions of bitcoin ETF withdrawals, including $120.24 million in net outflows on September 9 and $46.6 million one day earlier. Despite these withdrawals, products tracking Ether, XRP, and Solana attracted fresh capital, indicating continued capital allocation across the crypto market.
Altcoin Strength and Q4 Outlook
Broader market performance has reinforced the bullish outlook. Ethereum gained 29% over a three-week period cited by the strategist, compared with bitcoin's 20% advance. Hyperliquid approached $90, signaling broader risk appetite among investors.
Mena identified $2,500 as a seven-month resistance level for Ethereum and projected that a confirmed breakout could open a path toward $3,000. His fourth-quarter outlook also placed Ethereum at $3,500, Hyperliquid at $100, and Solana at $130 within potential trading ranges.
Before these targets face a market test, investors must navigate the August Consumer Price Index release and the Federal Reserve's September 15-16 policy meeting. Both events will shape expectations for interest rates and influence bitcoin's near-term trajectory, the strategist indicated.
