Bitcoin held its position near the $79,000 support level this week after the Bureau of Labor Statistics released August Producer Price Index data on September 10. Final demand prices rose 0.4% for the month and 5.4% year-over-year, figures that matched or slightly exceeded market expectations.
Energy costs accounted for much of the increase, with diesel fuel jumping 24.1% in August and overall energy prices rising 4.2%. According to 21Shares senior crypto research strategist Matt Mena, the reading came in "slightly hotter than expected," though markets had already priced in the move due to rising oil prices.
Bitcoin rebounded from a low of $77,603 toward the $80,000 mark as investors weighed the inflation data against ongoing exchange-traded fund demand. Mena noted that a move toward $82,000 by month-end appears increasingly likely, with a potential dip to $75,000 possible before further climbs.
ETF Inflows and Exchange Activity
U.S. spot bitcoin ETFs took in $603.3 million during the first six trading days of September. For the week ending September 4, U.S. spot crypto ETFs attracted $1.24 billion total, with bitcoin funds comprising $986.85 million of that amount. However, outflows followed on September 8 and September 9, totaling $166.84 million and reducing net assets from $99.52 billion to $99.33 billion.
Mid-sized coin deposits to major exchanges fell 15.5% since early August, with Binance experiencing a near 30% drop in inflows. This shift represented a 1,160 BTC movement between exchanges rather than an increase in overall selling pressure. Whale balances remained near 5.22 million BTC as of September 2, indicating limited fresh buying activity from the largest holders.
Market Outlook
The Consumer Price Index for August is scheduled for release Friday at 8:30 a.m. Eastern time, followed by the Federal Reserve's two-day policy meeting beginning September 15.
