Bitcoin climbed back above $80,000 after Fed Governor Christopher Waller said cooling short-term inflation could justify holding rates steady on Sept. 16. Markets stay split on the decision, with the August CPI report now the last major signal before the vote.
Bitcoin climbed back above $80,000 after Federal Reserve Governor Christopher Waller signaled he could support holding rates steady if inflation keeps cooling. The token briefly reached about $81,400 on Sept. 3, its highest intraday level since May.
Core inflation cools from 4.76% to 3.05%
Waller's case rests on three-month core inflation, which excludes food and energy and tracks the recent annualized pace rather than the year-over-year rate. That gauge fell to 3.05% through July, down from 4.76% in February, Waller said: "That is a considerable improvement, and the speed of this downward trajectory is encouraging."
Still, annual PCE inflation remains at 3.7%, and core PCE sits at 3.3% — both above the Fed's 2% target. Separately, core CPI has cooled from 4.76% to roughly 3%, Crypto Briefing reported.
A split Fed sets up the Sept. 16 test
The Federal Reserve meets Sept. 15-16, with the rate decision due at 2 p.m. ET on Sept. 16. After Waller's remarks, expectations for a September hike fell from roughly 59% toward 50%, while two-year Treasury yields declined and the dollar weakened. The committee itself is divided: it voted 9-3 in July to hold rates steady, with three officials preferring a 25-basis-point increase.
Separately, Crypto Briefing tracked Fed funds futures implying a 60-66% probability of that hike, which would mark the first increase since 2023, a shift it linked to Fed Chair Kevin Warsh's hawkish tone.
Next inflation report holds the answer
The next major trigger is the August CPI report, due before the Fed meeting. For Bitcoin, the gap between another push above $80,000 and renewed pressure could hinge on whether that print confirms Waller's disinflation trend or reverses it.
Sources: CCN, Crypto Briefing
Trading involves risk.
Risk Disclaimer
