Key facts
- US CPI rose 3.4% year-over-year in August, matching consensus.
- Month-over-month CPI increased 0.4%, also in line with forecasts.
- Core CPI annual rate cooled to 2.4%, the lowest since 2021.
- Monthly core CPI rose 0.3%, exceeding the 0.2% forecast.
- Bitcoin rebounded to trade near $79,000.
- Ethereum reclaimed $2,611 and Solana rose above $100.
US inflation data for August presented a mixed picture, with the headline Consumer Price Index (CPI) rising 3.4% year-over-year and 0.4% month-over-month, both matching consensus expectations. Core CPI, excluding food and energy, cooled to 2.4% annually, its lowest level since 2021. However, the monthly core reading of 0.3% was hotter than the 0.2% forecast by economists.
The report, released by the Bureau of Labor Statistics on Friday, is the last major data point the Federal Reserve's committee will consider before its September 15-16 meeting on interest rates. While Bitcoin initially dipped on the news, it subsequently rebounded, trading near $79,000. Ethereum reclaimed $2,611 and Solana rose above $100, indicating a broader crypto market rally. The Crypto Fear & Greed Index jumped to 73, signaling "greed" in the market.
Technically, Bitcoin's 50-day exponential moving average has crossed above its 200-day moving average, forming a golden cross, which traders interpret as a bullish signal. The Relative Strength Index (RSI) is at 59.7, indicating bullish territory but not overbought conditions. Key support zones for Bitcoin are identified between $73,986 and $75,569, with the late August high of $82,281 serving as a level to break for further extension.