Bitcoin Price Surges Toward $80K After US CPI Data

Bitcoin price jumped sharply following the latest U.S. inflation report, as cooling annual core inflation boosted sentiment across cryptocurrency and traditional markets. Bitcoin traded around $79,387, gaining 2.89% over 24 hours, while the total crypto market capitalization rose 2.36% to $2.69 trillion.

BTC briefly surged more than 4% following the CPI release, breaking above $79,000. Ethereum climbed over 8% during the initial reaction and reached $2,640, its highest level in seven months. XRP traded near $1.40, while stocks and precious metals also strengthened.

Annual U.S. core CPI slowed to 2.4%, marking its lowest level in 66 months. The measure excludes volatile food and energy costs and is closely watched for signs of underlying inflation. Headline CPI remained at 3.4%, partly reflecting elevated oil prices linked to the Iran conflict.

However, the inflation report delivered a mixed signal for the Federal Reserve. Monthly core CPI increased 0.3%, exceeding the 0.2% consensus forecast. Persistent inflation in services raised concerns that domestic price pressures remain elevated despite the improvement in annual figures.

Interest-rate markets subsequently pushed the estimated probability of a Fed rate hike to 85%, increasing uncertainty ahead of the September 16 FOMC decision. Policymakers must weigh stubborn monthly services inflation against the broader decline in annual core inflation.

Bitcoin is now approaching the psychologically important $80,000 resistance level. A confirmed breakout above $80,000 could strengthen bullish momentum and potentially open the door toward $82,000 and then $84,000.

Technical indicators have also improved. Bitcoin's Relative Strength Index rose to 54.98, keeping BTC in neutral territory without signaling overbought conditions. The MACD recorded a bullish crossover and its histogram turned positive, although both MACD lines remain below zero.

If Bitcoin fails to clear $80,000, selling pressure could push BTC back toward $78,000 support. A deeper correction could expose the $76,000 level as markets continue assessing inflation data and the upcoming Federal Reserve decision.