Key Takeaways
- BTC surged beyond $79,000 following U.S. annual core inflation data dropping to a 66-month low of 2.4%
- The monthly core inflation figure registered 0.3%, exceeding the anticipated 0.2%, driving Federal Reserve rate hike probability to 85%
- Bitcoin exchange-traded funds experienced $13.29 million in net withdrawals on September 11, marking a fourth consecutive day of negative flows
- Ethereum exchange-traded funds recorded $216 million in net deposits, with BlackRock’s ETHA accounting for $149 million
- A sustained close beyond $80,000 could establish upside targets at $82,000 and $84,000
The world’s largest cryptocurrency surged back above the $79,000 threshold on September 11 following the release of U.S. Consumer Price Index figures that aligned with market forecasts. This upward movement came after a temporary decline to $76,000, which attracted renewed buying interest.
The flagship digital asset was trading at $79,387.86, representing a 2.89% increase over the previous 24-hour period. The overall cryptocurrency market advanced 2.36%, elevating total market capitalization to $2.69 trillion.
The annual core inflation metric decelerated to 2.4%, marking its lowest level in 66 months. This measurement excludes volatile food and energy components and is regarded as a more accurate gauge of persistent inflation trends.
Market analyst Crypto Patel had anticipated the data release, posting on X that should core inflation register below 0.2% month-over-month, Federal Reserve rate increase expectations might diminish and propel Bitcoin higher. However, the actual 0.3% reading created a more complex scenario.
The headline inflation figure remained steady at 3.4% year-over-year. Energy costs played a significant role, with gasoline prices climbing 3.9% in August and contributing more than one-third of the monthly gain. The overall energy index advanced 2.1% during the month, attributed to escalating oil prices connected to tensions between the U.S. and Iran.
Federal Reserve Rate Hike Probability Increases
While the annual figure showed cooling, the monthly core inflation reading rose 0.3%, surpassing the 0.2% market consensus. This development elevated implied probability of a Fed rate increase at the September 16 meeting to 85%, up from 60% a week prior, based on CME Group’s FedWatch Tool.
The monthly increase was fueled by persistent supercore services inflation, which excludes both energy and shelter costs. Fed governor Christopher Waller had previously indicated he would favor maintaining current rates if inflation demonstrated “some signs of disinflation.”
U.S. 30-year Treasury yields jumped to their highest levels since June 2004 before retreating to 5.309%. Trading firm QCP Capital cautioned that elevated yields represent a significant obstacle for Bitcoin, characterizing the current landscape as “the worst mix for Bitcoin” ā a competitive 5% risk-free return without an accompanying growth catalyst.
Exchange-Traded Fund Flows Present Contrasting Picture
Bitcoin spot exchange-traded funds registered $13.29 million in net withdrawals on September 11, representing the fourth straight day of negative flows, according to SoSoValue data. Morgan Stanley’s MSBT was the only exception with $3.76 million in net deposits.
Market analyst Ted Pillows observed on X that the day’s price surge was not supported by robust spot demand, and that increasing rate hike probability adds downward pressure. He suggested that a convincing weekly close above $80,000 accompanied by substantial ETF inflows could drive BTC toward $85,000, but indicated the current setup suggests a potential pullback.
Ethereum exchange-traded funds presented a contrasting narrative, recording $216 million in net deposits. BlackRock’s ETHA dominated with $149 million. Ethereum itself surged over 8% during the session, touching $2,640 for the first time in seven months.
From a technical perspective, Bitcoin’s MACD indicator displayed a bullish crossover with the histogram turning positive at 13.86, although both MACD lines remain in negative territory. The RSI registered 54.98, positioning BTC in neutral range.
Bitcoin exchange-traded fund withdrawals amounted to $13.29 million on September 11, continuing a four-day negative streak leading up to the Fed’s September 16 policy decision.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
