Bitcoin Breaks $114,000, CPI in Focus
Bitcoin rose 2.3% to $114,076 on Thursday, continuing its overnight rally after weaker-than-expected US PPI data fueled optimism about an interest rate cut. Market focus now turns to the August CPI release, which will be the next test of crypto asset risk appetite.
The rise in risk appetite stems from expectations that the Fed could cut interest rates next week. However, some market participants remain cautious as the CPI is expected to rise—along with the impact of trade tariffs—which could potentially lift the dollar and pressure crypto in the short term.
According to market pricing, the odds of a 25 bps cut on September 16-17 are around 93.7%, while the 50 bps option is around 6.3%. Lower interest rates are generally positive for crypto because they increase liquidity and appetite for riskier assets—factors that contributed to Bitcoin's rally last year.
Despite the strength, BTC is still recovering its sharp decline since its mid-August record. The next direction is likely to be determined by the CPI results: a colder reading could strengthen the rally, while a warmer reading risks triggering short-term profit-taking before a new direction is established. (ayu)
Source: Newsmaker.id
