Bitcoin rebounded past $79,000 as US core CPI rose 0.3% month-on-month and markets increased the implied probability of a Federal Reserve rate hike at the Sept. 16 meeting to 85%.

Bitcoin rebounds as CPI data reshapes rate expectations

Bitcoin rebounded past $79,000 and rose toward $80,000. US core CPI increased 0.3% month-on-month, while the implied probability of a Federal Reserve rate hike at the Sept. 16 meeting rose to 85%.

Rate-hike odds rise ahead of the Fed meeting

The odds of a 0.25% Federal Reserve rate increase at the Sept. 16 meeting stood at 60% a week earlier before rising to 85%. A separate market reading put the chance of a Fed rate hike on Wednesday at 92.5%.

Bitcoin remains range-bound despite the rebound

Bitcoin has traded within roughly $76,000 to $80,000 for 24 days. Its volatility has fallen to a one-month low, while buying conviction has dropped to 3%.

Traders remain cautious around Fed decisions

Bitcoin had a muted reaction around the Fed’s last rate hike in July 2023. Around previous Federal Open Market Committee meetings, investors showed an average 8% selling tilt toward stablecoins. QCP Capital said Bitcoin bulls had little to look forward to.