Bitcoin Magazine

Bitcoin Price Spikes, Shrugs off Hot US Inflation Data

Bitcoin’s price rose on Friday — despite data revealing that U.S. inflation had risen. 

The biggest cryptocurrency by market cap was recently trading for close to $78,749 after jumping 2% over a 24-hour period. At one point on Friday morning in New York, bitcoin rose as high as $79,607. 

Bitcoin’s price spike came after news dropped that U.S. consumer prices accelerated in August, reinforcing ​expectations that the Federal Reserve will raise interest rates next week.

The consumer price index, excluding food and energy, climbed 0.3% in August from a month earlier, which was higher than expected. 

Inflation in the U.S. has been difficult to tame due to the war with Iran, which has lifted oil prices, in turn raising the costs of food, gasoline and other goods. 

Higher inflation typically means the Federal Reserve will raise interest rates, which in turn could stop bitcoin’s price climbing higher. 

According to CME’s FedWatch tool, traders think there is a 85% chance interest rates will be higher by next week. The Federal Reserve will meet next week and reveal what it will do with borrowing costs. 

Bitcoin has typically performed well in a low interest rate environment because it means people can buy more of the cryptocurrency with increased liquidity. 

Federal Reserve Chairman Kevin Warsh, who took the helm in January, last month gave his first speech as head of the U.S. central bank and said he had “more work to do” to fight inflation. 

The U.S. is currently in the grips of an affordability crisis and rising oil prices are a hot topic ahead of the midterm elections. 

U.S. President Donald Trump has reassured voters that prices will get under control and repeatedly put pressure on the central bank to lower interest rates. 

Bitcoin in August had its biggest run in years following positive regulatory news and an announcement from the U.S. Treasury. 

Treasury Secretary Scott Bessent announced the department would double the size of its long-dated bond buybacks, helping non-yielding assets like bitcoin and gold. The cryptocurrency then benefited from President Trump urging lawmakers to get key crypto legislation, the Clarity Act, over the line. 

This post Bitcoin Price Spikes, Shrugs off Hot US Inflation Data first appeared on Bitcoin Magazine and is written by Mathew Di Salvo.

Bitcoin Magazine

Bitcoin Yawns As Fed’s Favorite Inflation Gauge Eases 

Bitcoin’s price dipped slightly before remaining mostly steady after data on Wednesday showed that U.S. inflation was subdued. 

The price of the largest cryptocurrency recently stood at $63,863, mostly unmoved over a 24-hour period. Over the past week, Bitcoin is also flat. 

The core consumer price index, which excludes often-volatile food and energy categories, rose 0.2% from a month earlier and increased 2.5% from a year earlier — the slowest pace since March 2021.

Energy and gas prices fell for a second month and grocery prices dropped for the first time since March, according to the print. 

The news takes the pressure off Federal Reserve Chairman Kevin Warsh to raise interest rates in September. 

Softer inflation data eases the path toward rate cuts, and lower rates reduce the opportunity cost of holding an asset that pays no yield. Bitcoin has typically performed well in a low-interest rate environment. 

Sticky inflation in the world’s biggest economy has led the Federal Reserve to take a cautious approach with interest rates. Despite Wednesday’s softer inflation data, prices are still higher ​than they were a year ago and wages in the U.S. are not keeping up.

Bitcoin has faced increased volatility since the U.S. and Israel attacked Iran in February, with the leading cryptocurrency dropping hard on initial reports of war. Bitcoin is now down nearly 30% year-to-date. 

Still, in recent weeks, investors have shown a growing appetite for the asset. Spot Bitcoin exchange-traded funds in the U.S. have experienced massive inflows — the biggest since April last week — despite negative news for the crypto industry: a massive exploit of the popular Coldcard Bitcoin hardware wallets last month shook crypto investors and a vote on the long-awaited digital asset market structure bill, the Clarity Act, has been delayed. 

This post Bitcoin Yawns As Fed’s Favorite Inflation Gauge Eases  first appeared on Bitcoin Magazine and is written by Mathew Di Salvo.

Bitcoin Magazine

Bitcoin Barely Budges as Fed Keeps Interest Rates Unchanged

Bitcoin was trading higher on Wednesday — but only slightly — after the Federal Reserve decided to keep interest rates still. 

The leading cryptocurrency was recently priced at close to $64,402 per coin, after moving up by nearly 1% in the hour following the announcement. 

As expected, the U.S. central bank left the federal funds rate in the 3.50%-3.75% range. Three of the 12 members of the policy-setting Federal Open Market Committee “preferred” a quarter-percentage-point hike at this meeting. 

BREAKING:  Federal Reserve officially leaves interest rates unchanged at 3.5-3.75%. pic.twitter.com/mkMnSee2ou

— Bitcoin Magazine (@BitcoinMagazine) July 29, 2026

Speaking to the press following the announcement, the Fed’s new Chair, Kevin Warsh, revealed little about where the central bank would go next. 

“The Fed’s on the case,” he said. “I’ve been heartened by the reception I’ve received. We’re committed as ever to deliver.” 

He added that the July rate decision was “a rigorous review of the economic situation.”

“I wouldn’t characterize what we did as anything like a pause,” he said. “I would characterize what we did as a rigorous review of the economic situation. I would characterize what we did as a review of the big, hard questions.”

Warsh, who took over in May, has said he has “no tolerance” for inflation that has been running above the central bank’s target for more than five years.

Bitcoin has typically performed well in a low-interest rate environment, and crypto investors have been hoping the Federal Reserve would cut rates to boost digital assets. 

President Donald Trump since taking office has pushed for lower interest rates, and clashed with ex-Fed chair Jerome Powell over the matter. 

For now, Warsh doesn’t seem like he’ll be going in that direction as sticky inflation continues to bother Americans. 

The Federal Reserve started aggressively raising rates in 2022 in a bid to control 40-year-high inflation spurred by the COVID-19 pandemic. Bitcoin was hit by the tightening.

Then, in 2024, the central bank repeatedly cut rates. It has been hesitant to lower them since the end of 2025. 

This post Bitcoin Barely Budges as Fed Keeps Interest Rates Unchanged first appeared on Bitcoin Magazine and is written by Mathew Di Salvo.