BTC/USD: Bitcoin Jumps 5% After Inflation Data Sparks Broad Crypto Comeback

Orange coin is on its way to snap a two-week losing streak with prices finding some modest momentum after latest CPI data.

• Bitcoin prices BTCUSD topped $58,000 per coin early Thursday after crypto traders went on the offensive following a major economic report. Released Wednesday, the consumer price index showed inflation cooled further to 2.5% in August, sliding below expectations for 2.6%. What’s more, it marked the lowest rate of inflation since 2021 before price pressures heated up to a 40-year high.
• All that was good news for the crypto space — digital assets enjoyed some needed tailwinds after a dry spell that lasted throughout the month of August. Now, a feeling of rejuvenation is sweeping across tokens but the major test is still ahead — the Federal Reserve meets this Wednesday to decide the fate of interest rates. Markets are more or less aligned for a cut to borrowing costs of 25 basis points.
• This conviction helped buoy digital assets as lower interest rates make money more affordable — it costs less to grab a loan and shove it into risk assets. And what’s riskier than a meme coin you’ve never heard of? Back to the upper echelon of the novel asset class — Bitcoin has been increasingly dependent on interest rates, especially after it joined the traditional assets with its own spot BTC ETFs (exchange-traded funds), which have been gaining good traction. Bitcoin is en route to log the week in the green, potentially snapping two weeks of losses.