Bitcoin sinks as CPI inflation hits 8.3%, shortening odds of 3rd consecutive 75 bps hike
Bitcoin prices fell after the US Bureau of Labor Statistics (BLS) released its Consumer Price Index (CPI) data. 0.1% August increase, taking raw values to 8.3%.
Bitcoin closed 5% higher to $24,050 in response to last month’s BLS CPI report released on August 10. BTC has since trended downwards and on Sept. 7 he formed a local bottom at $18,700.
Since then, BTC has recorded 6 green closes in a row each day, and today’s price is also on an upward trend ahead of the BLS announcement.
However, when the CPI data was released at 13:30 UTC, BTC’s immediate reaction was a 5% drop, rebounding above $21,600.
Focus on September FOMC
Following its last Federal Open Market Committee (FOMC) meeting on July 27, the Fed enacted a 75 basis point rate hike to deal with mounting inflationary pressures.
The next FOMC meeting is scheduled for September 20-21, 90% of professionals now target a 75 basis point increase. If implemented, it would be the third straight rate hike of 75 basis points.
The outlook for risk-on assets remains bearish for the foreseeable future as the Federal Reserve shows no signs of loosening its hawkish stance.
