Bitcoin Eyes $80,000 as Cooling Core CPI Ignites Crypto Rally

Bitcoin reaches $79,450 and Ethereum jumps 8% after U.S. CPI data. Markets eye $80,000 despite a 90% probability of a Federal Reserve rate hike.

Annual CPI remained at 3.4%, while cooling core inflation provided a boost to risk assets, even as traders ramped up bets on a Federal Reserve interest rate hike.

BTC continued its upward trajectory following the U.S. inflation data, reaching $79,450 with a 2.82% gain over the last 24 hours. Just an hour earlier, the cryptocurrency was trading below $79,000, signaling an acceleration in buying pressure following the initial CPI reaction.

Despite this recovery, Bitcoin remains virtually unchanged for the week, showing a slight 0.05% decline. This places the $80,000 level as the immediate psychological test for buyers.

ETH is displaying significantly stronger dynamics. The leading altcoin surged 8.11% to $2,632.02 within 24 hours and is now up 7.34% for the week. In the last hour alone, the token added 4.89%, highlighting its superior momentum compared to Bitcoin.

Altcoins Accelerate Following Ethereum’s Lead

The rally spread across the majority of top cryptocurrencies. Solana rose 4.96% to $104.68, BNB added 3.54% to $735.31, and XRP climbed 3.07% to $1.40.

Dogecoin reached $0.08711 following a daily gain of 3.77%, while Hyperliquid rose 2.74% to $83.22. Chainlink added 2.68%, reaching $12.01.

Zcash stood out once again on a weekly basis. ZEC crossed $1,200.68, marking a 21.36% increase over seven days. However, its daily rise of 2.72% remains notably behind the performance of ETH and Solana.

CPI Sparks Buying Interest Despite Firm Fed Stance

U.S. consumer prices rose by 0.4% in August, while annual inflation held steady at 3.4%. Core CPI increased by 0.3% for the month, but the annual core figure slowed to 2.4% from 2.5%, hitting its lowest level since March 2021.

This created an unusual combination for the crypto market. The slowdown in annual core inflation eased some concerns regarding persistent price pressures, yet the 0.3% monthly increase was not weak enough to shift expectations for immediate Fed policy.

Energy remains a primary risk. Gasoline prices jumped 3.9% in August, accounting for more than one-third of the monthly CPI increase, demonstrating how quickly higher energy costs impact headline inflation.

Crypto Rallies Despite 90% Odds of Rate Hike

The most unusual signal following the CPI release is the simultaneous rise in cryptocurrency prices and the increased expectations for tighter policy. Traders are now pricing in a roughly 90% probability that the Fed will raise interest rates by 25 basis points next week.

Rather than weighing on Bitcoin, this repricing was followed by an acceleration toward $80,000. This suggests that much of the rate hike risk is already priced in, while the lack of surprises in the annual CPI limited fears of even more aggressive tightening.

Sentiment remains positive, with the Fear and Greed Index sitting at 69 points in the “Greed” zone. However, the Altcoin Season Index is only at 38, indicating that the strong performance of ETH, SOL, and other major tokens does not yet represent a broad-based altcoin season.

$80,000 Becomes the Next Test for Bitcoin

With the price hovering around $79,335, BTC is now less than 1% away from the psychological $80,000 barrier. A breakout above this level would erase nearly all weekly losses and provide buyers with a clearer signal that the recovery is gaining sustainability.

Meanwhile, Ethereum is showing a stronger appetite for risk. A daily gain of over 8%, combined with increases in Solana, BNB, XRP, and Dogecoin, indicates that buying activity is expanding beyond Bitcoin.

The next major catalyst is the Fed’s decision. With a 90% probability of a 25-basis-point hike, the move itself is largely calculated. For Bitcoin and the broader crypto market, the more critical signal will be whether the central bank views the hike as a one-time response to inflationary pressure or the start of a more prolonged tightening cycle.

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