Bitcoin News
By Steven Anderson
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Rate Hike Odds Jump to 82%. Here's where it gets complicated. The CPI matched forecasts — which should have been calming.
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Stagflation Risk Adds Pressure on Bitcoin. Dalio also raised the stagflation question — and that's where things get murky for crypto.
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Bitcoin touched $79,837 on Friday. That's the number everyone's watching — close enough to $80,000 that traders felt it, but not close enough to hold.
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The move came right after the U.S. Bureau of Labor Statistics dropped August Consumer Price Index data that basically matched what economists had penciled in.
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And the carnage showed. Over $732 million in crypto liquidations hit the market, per Coinglass. Long positions accounted for $104 million of that.
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Here's where it gets complicated. The CPI matched forecasts — which should have been calming. But prediction markets didn't read it that way.
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Economist Peter Schiff said a rate hike seemed pretty much inevitable, with another one possibly coming in December. He didn't soften that view.
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Ray Dalio weighed in too. He pointed to rising long-term rates as a force that could drag on stock markets, and by extension, assets like Bitcoin that institutional investors…
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Dalio also raised the stagflation question — and that's where things get murky for crypto. Stagflation means economic stagnation and inflation happening at the same time.
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See also: Bitcoin Approaches $79,000 as Traders Brace for Fed Rate Decision
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For Bitcoin, the stagflation scenario is specifically rough. As real interest rates rise, capital tends to flee high-risk assets.
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The $732 million liquidation figure from Friday's session is basically a preview of what that dynamic looks like in practice.
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Dalio's broader point is that the interplay between rates, dollar strength, gold, and equities creates a complex web that Bitcoin can't fully escape.
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Traders are watching every Fed signal now. The 82% probability of a 25 basis point hike is already baked into positioning for a lot of desks.
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More context: Trumps $5,000 Dividend Proposal Fails to Move Bitcoin from $77,700 Range
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