PiCK
Bitcoin Reclaims $79,000 as Traders Brace for U.S. Inflation Data Ahead of Fed Meeting
Summary
- Bitcoin (BTC) fell as low as $77,670 intraday before recovering to $79,181.02.
- Markets are bracing for potentially higher volatility ahead of the U.S. PPI report on September 10, the CPI report on September 11, and next week's FOMC meeting.
- U.S. spot Bitcoin ETFs recorded about $1 billion of net inflows for a third straight week, while 71% of Bitcoin's supply is in profit, raising the prospect of profit-taking as prices approach the top of the range.
Forecast Trend Report by Period
Bitcoin recovered after falling below $78,000 intraday, with markets turning their attention to inflation data due before next week's Federal Open Market Committee meeting.
As of 1:56 p.m. in Korea on September 9, Bitcoin was trading at $79,181.02 on Binance's USDT market. It had dropped to as low as $77,670 a day earlier before rebounding as buying emerged. While the token was little changed over the past 24 hours, it has risen nearly 2% over the past week.
Macroeconomic uncertainty is capping Bitcoin's upside. Escalating tensions in the Middle East pushed Brent crude close to $100 a barrel, while gold traded around $4,407 an ounce.
U.S. Treasury yields also remained elevated. The 10-year yield hovered near 4.8%, while the two-year stood above 4.3%. CME FedWatch showed markets pricing in about a 60% chance that the Federal Reserve will raise interest rates next week.
Jasper De Maere, an OTC trader at Wintermute, said the market is currently moving more on interest rates than on crypto-specific factors. Volatility could increase later this week as the final macroeconomic data arrive before the Fed's rate decision, he added. In the near term, he identified $75,000 and $82,000 as key levels ahead of the September 15-16 FOMC meeting.
Markets are watching the U.S. producer price index due on September 10 and the consumer price index due on September 11. Core CPI is forecast to slow to 2.4%. The two releases are the last major inflation indicators before the upcoming FOMC meeting.
Institutional flows have remained relatively solid. U.S. spot Bitcoin exchange-traded funds attracted about $1 billion last week, extending net inflows to a third straight week.
Still, on-chain data point to potential selling pressure. CoinDesk reported that more than 71% of total Bitcoin supply is now in profit. That is up from about 67% in May at a similar price level. The report said profit-taking may increase as Bitcoin approaches the upper end of its recent $77,200-$82,100 range.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.