Bitcoin Rebounds Toward $79,000 After CPI Print as Markets Look to Fed Meeting

Bitcoin climbed back toward $79,000 after an initial drop following the latest U.S. inflation report. The Consumer Price Index increased 3.4% year over year and 0.4% month over month, both in line with expectations. Core CPI rose 0.3% on the month versus forecasts for a 0.2% gain, while the annual core rate eased to 2.4% from 2.5% in July. The data landed five days ahead of the Federal Reserve's September 1516 meeting, where Chair Kevin Warsh's committee is set to vote. CME FedWatch pegged the probability of a 25basispoint hike at about 69%, while Polymarket, Myriad, and other trackers priced the same outcome at 62% and 61%, respectively. Across digital assets, total crypto market capitalization moved back toward $2.7 trillion. Ethereum jumped 7.48% to $2,611, Solana added 4.53% to trade above $100, and Zcash rose 23.09% over the past week, including a 4.71% gain in the last 24 hours. The Crypto Fear & Greed Index advanced to 73, while the Altcoin Season Index stood at 38. Flow and derivatives data were mixed. Spot Bitcoin ETFs posted net outflows of roughly $330.5 million. Open interest across crypto futures increased 1.52% to $429.99 billion, and 24hour trading volume rose 2.27% to $877.11 billion. Liquidations totaled $897.09 million, split between $493.85 million in longposition liquidations and $403.24 million in shortposition liquidations. Bitcoin opened at $76,529 and slid to an intraday low of $76,040 after the CPI release, before later reaching $79,837. It was last near $79,007, up 3.24% on the day. Technically, Bitcoin's 50day exponential moving average crossed above its 200day average, signaling a goldencross setup, though the move was described as not fully confirmed because the gap between the averages has not widened meaningfully. The Relative Strength Index stood at 59.7, below the 70 level commonly associated with overbought conditions. A Fibonacci retracement zone drawn from the summer low of $68,858 to the lateAugust high of $82,281 was cited at $73,986 to $75,569. The lateAugust peak of $82,281 remained the level to watch for a potential extension higher ahead of the Fed's rate decision on Wednesday at 2pm ET.