Bitcoin briefly rebounded past $79,000 and US stocks turned green as US CPI inflation data met expectations.
Bitcoin (BTC) returned to $79,000 on Friday after key US inflation data broadly conformed to expectations.
Data from TradingView showed renewed BTC price volatility ensuing after the August release of the Consumer Price Index (CPI), which came in at 3.4% year-on-year.
BTC/USD one-hour chart. Source: Cointelegraph/TradingView
After initially dropping to $76,000, BTC/USD quickly reversed upward, gaining more than 3% on the day.
The move echoed US equities, which also turned green after a weak start to the session. This was catalyzed by CPI conforming to expectations only a day after the Producer Price Index (PPI) overshot. The S&P 500 was up 1% at the time of writing, while the tech-heavy Nasdaq Composite Index gained 1.1%.
S&P 500 one-hour chart. Source: Cointelegraph/TradingView
US bond yields also saw snap volatility. On the back of the CPI print, the 30-year yield whipsawed, first reaching its highest levels since June 2004 before falling to 5.309%.
“This is a nervous market,” trading resource The Kobeissi Letter summarized in a response on X.
US 30-year bond yield one-hour chart. Source: Cointelegraph/TradingView
As WTI crude oil continued to circle $100 per barrel, the impact of the expanding US-Iran war and associated oil-supply squeeze was noticeable in the CPI numbers.
“The index for gasoline rose 3.9 percent in August, accounting for over one third of the monthly all items increase. The index for energy increased 2.1 percent over the month,” an official news release from the Bureau of Labor Statistics (BLS) confirmed.
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