Why Bitcoin initially held its gain as rate traders put September hike odds at 85%

According to CryptoSlate, Bitcoin initially held its daily gain while rate traders priced September hike odds at 85% following the August inflation report. The consumer price index rose 0.4% in August, with gasoline driving more than one-third of that monthly increase after climbing 3.9%. Meanwhile, monthly core inflation accelerated to 0.3%, even as its annual rate eased to 2.4%.

Federal Reserve Governor Christopher Waller had previously indicated that a hot inflation report could lead him to consider a rate hike at the September 15-16 meeting. While the headline jump was heavily tied to volatile gasoline prices, the acceleration in monthly core inflation kept policy tension alive. As US trading closed for the week, CryptoSlate market data showed Bitcoin at $78,683, up 2.08% over 24 hours, though weekend liquidity later saw prices shift. Reuters reported that futures moved to about an 85% probability of a quarter-point increase at the upcoming meeting. Additionally, the August report did not account for sharper oil-price moves developing in September, leaving broader energy shocks and future inflation data as separate risks for policymakers to monitor.