Bitcoin experienced a sharp but temporary decline following the release of US inflation data, dipping toward $76,000 before recovering to trade above $77,100. The recovery underscored a divided market as traders assessed the implications of the latest inflation report for Federal Reserve policy.
The Consumer Price Index increased 0.4% in August according to the US Bureau of Labor Statistics, higher than July's 0.1% increase and in line with economist forecasts. Year-on-year inflation remained at 3.4%, continuing to sit above the Federal Reserve's target.
Core inflation, which excludes volatile food and energy costs, rose 0.3% during the month—a steeper increase than the 0.2% most economists had anticipated. On an annual basis, core inflation fell from 2.5% to 2.4%.
Gasoline prices drove much of the monthly increase, rising 3.9% and pushing the broader energy category up 2.1%. Housing costs rose 0.3%, while food prices increased by 0.1%.
Bitcoin's price ranged between $76,400 and $79,550 during the session, reflecting trader uncertainty about how the inflation data would influence the Federal Reserve's September 15-16 meeting.
The broader crypto market showed strength during the session. Ethereum traded near $2,543, up nearly 3.2% with intraday highs of $2,648. Solana gained about 1.5% at around $101, while BNB rose 1.4% to roughly $723. Dogecoin was up 0.5%, and XRP remained near unchanged at $1.35.
