Bitcoin's price experienced a sudden downward movement following the release of the United States Consumer Price Index (CPI) data for August by the Bureau of Labor Statistics. The report largely matched market expectations.
The regular CPI showed a 3.4% year-over-year increase, matching expectations, while the monthly increase came in at 0.4%, also as anticipated. The core CPI, which excludes volatile sectors like food and energy, showed a 2.4% year-over-year jump. The core CPI monthly increase was 0.3%, slightly above the anticipated 0.2% bump.
Bitcoin reacted to the news with an immediate drop of roughly $1,000. However, the asset recovered just as quickly, trading above $77,000 as of press time.
This release followed the Producer Price Index (PPI) report from the previous day, which showed a more notable year-over-year jump of 5.4%. Both reports indicated that inflation remains persistent.
With the week's inflation data now released, attention shifts to the United States Federal Reserve. The central bank is scheduled to hold its next FOMC meeting on September 15–16, with the interest rate decision to be announced on the second day. Current expectations indicate that experts anticipate a 25 basis point rate hike.
