Bitcoin News

Story: Bitcoin Soars to $79,000 After CPI Data Sparks Market Whipsaw

By Jean-Luc Maracon

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Stocks Gain, Bond Yields Hit 2004 Highs. US equities had a better day. The S&P 500 climbed 1%, the Nasdaq Composite added 1.

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Fed Rate Hike Odds Jump to 85%. The Fed meeting is the next big thing. Scheduled for September 16, it's now the focal point for…

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Treasury Buybacks as Bitcoin's Lifeline. There is one potential bright spot, and QCP Capital pointed to it directly.

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Bitcoin nearly hit $80,000 on Friday. It didn't quite get there, but $79,000 was close enough to turn heads across trading desks.

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The initial reaction was ugly. Bitcoin dropped to $76,000 within minutes of the CPI release. Then it bounced, hard, finishing the day up more than 3%.

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US equities had a better day. The S&P 500 climbed 1%, the Nasdaq Composite added 1.1%, both riding the same inflation-data wave.

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Bond yields were the real story, though. Thirty-year Treasury yields hit their highest levels since June 2004 before pulling back to settle at 5.309%.

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The CPI report itself had a clear culprit for the monthly jump: energy. Gasoline prices rose 3.9% in August alone, accounting for a big chunk of the overall monthly increase.

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The Fed meeting is the next big thing. Scheduled for September 16, it's now the focal point for basically every asset class. Per CME Group's FedWatch Tool, the probability of a 0.

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See also: Bitcoin Approaches $79,000 as Traders Brace for Fed Rate Decision

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Not everyone inside the Fed seems convinced a hike is necessary. Some officials have floated the idea of holding rates steady if disinflationary trends continue to show up in the…

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QCP Capital's read on the bond market is worth sitting with. Their view: the recent surge in US yields isn't just about inflation — it's also about a risk premium creeping into…

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There is one potential bright spot, and QCP Capital pointed to it directly. The US Treasury has announced increased debt buyback operations, and those interventions could inject…

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Related: Bitcoin and Ether Surge as Fed Holds Rates Despite Mixed Inflation Data

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The math is awkward right now. A 5% risk-free rate with no real growth premium attached to it makes traditional assets genuinely competitive against crypto.

The Currency Analytics

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