August inflation pushed Fed rate-hike expectations higher, yet stocks rallied while Bitcoin faced liquidations, leverage unwinding, and volatile price swings.

The August U.S. Consumer Price Index delivered a surprisingly complicated message to financial markets.

Inflation remained sticky, and expectations for a Federal Reserve rate hike jumped sharply. Yet U.S. stocks rallied, while crypto delivered a far more chaotic reaction — a sharp Bitcoin drop, hundreds of millions of dollars in liquidations, a powerful rebound and another wave of repositioning.

The divergence raises a bigger question: Why did stocks absorb the CPI shock while crypto struggled to turn the same macro event into a sustained rally?

CPI Raised Rate-Hike Expectations

August CPI increased 0.4% month-over month and 3.4% year over year, while core CPI rose 0.3% monthly and 2.4% annually. The monthly core figure was slightly hotter than expected, while gasoline and other energy costs contributed significantly to the headline increase.

The market immediately became more confident that the Fed could raise rates at its September meeting.

Rate-hike expectations moved from roughly 72% before the CPI release to around 87% afterward, with some later market pricing putting the probability near 90%.

That should normally be a headwind for risk assets.

But stocks had another story to tell.

Stocks Rallied Despite the Hotter Inflation Data

U.S. equities reacted surprisingly well.

The S&P 500 gained 0.86%, the Nasdaq Composite rose 0.96%, and the Dow Jones added roughly 509 points, or 0.98%.

One reason was that investors had already been preparing for tighter monetary policy. Falling oil prices also provided relief, helping offset some of the inflation concerns. Reuters noted that stocks climbed even as Treasury yields rose, with the retreat in oil prices supporting sentiment.

In other words, Wall Street focused less on the inflationary headline and more on what was already priced into markets.

Crypto reacted very differently.

Bitcoin Fell First — Then Short Sellers Got Trapped

Bitcoin entered the CPI release around $76,500–$76,570 before briefly falling to approximately $76,040–$76,050.

But the sell-off didn’t last.

BTC subsequently surged toward $79,800–$79,900 before settling around $77,200–$77,300.

That violent reversal triggered a massive derivatives event. Depending on the reporting window, crypto liquidations were reported in the roughly $674 million to $745 million range, affecting around 100,000 traders.

The important point isn’t the exact liquidation total. It’s what happened to market positioning.

A whale holding a roughly $70 million BTC long was liquidated during the initial move, reportedly losing around $1.6 million. After the rebound, the same whale reopened a smaller BTC long worth approximately $13.68 million.

The market wasn’t simply reacting to CPI. It was reacting to leverage.

Falling Open Interest Tells the Bigger Story

Aggregate crypto futures open interest fell from approximately $62.4 billion to $59.5 billion around the CPI volatility.

That matters.

If Bitcoin had rallied because traders were aggressively opening new leveraged long positions, we would expect open interest to rise alongside price.

Instead, OI declined while funding rates remained relatively moderate.

That suggests the rebound was driven substantially by deleveraging and short covering, rather than a fresh wave of aggressive long positioning.

ETF Flows Were Another Warning Sign

Bitcoin’s institutional flow picture was also far from bullish.

Spot Bitcoin ETFs recorded approximately $462–$463 million in net outflows from September 8 through September 11:

• Sep. 8: –$46.6M
• Sep. 9: –$120.2M
• Sep. 10: –$282.6M
• Sep. 11: –$13.3M

Interestingly, the largest outflow came before CPI day, while the September 11 outflow was relatively small.

Ethereum ETFs, meanwhile, reportedly attracted roughly $216 million, suggesting that institutional crypto positioning was becoming more selective rather than uniformly bearish.

The Bigger Lesson

The August CPI reaction shows that stocks and crypto are no longer simply two versions of the same risk trade.

Stocks absorbed the inflation shock because investors had already adjusted to higher rate expectations, while falling oil prices and strong technology shares provided support.

Crypto had to process the same macro information through a much more leveraged market structure.

The result was a sharp liquidity flush, whale liquidation, falling open interest and then a short-covering rebound.

So while stocks rallied after CPI, crypto didn’t exactly fail because prices fell.

It failed to produce the clean, conviction-driven rally that equities delivered.

And that distinction could become increasingly important as markets head toward the September Fed decision.

Stocks Rallied After CPI. Why Is Crypto Struggling? was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.

Bitcoin’s Rapid Recovery Runs Into a Macro Wall

$79,000 becomes the market’s latest battleground

Bitcoin’s powerful August rebound is facing a fresh test around the $79,000 to $80,000 region as traders reassess just how supportive the US monetary backdrop will remain. After climbing roughly 23% over seven days, BTC slipped back below $79,000 on Wednesday, interrupting one of its strongest short-term advances of the year.

The pullback does not erase the scale of the recovery. Bitcoin remains substantially higher on the week, while August inflows into spot Bitcoin ETFs have reportedly surpassed $3 billion. That combination suggests meaningful demand has returned even as short-term traders take profits.

The wider crypto market was less resilient. Most large-cap digital assets traded flat or lower over the previous 24 hours, with Solana and BNB among the notable exceptions in some market snapshots.

The central question for the Bitcoin price now is whether buyers have enough conviction to turn the high-$70,000 range into lasting support rather than simply chasing a fast recovery.

Also Read: Bitcoin’s $80K Breakout Sends Crypto Sentiment Surging Toward Greed

Bullish signals meet profit-taking pressure

On-chain indicators have improved alongside the rally. CryptoQuant data cited in market reports suggest important measures of capital movement have shifted into bullish territory following Bitcoin’s roughly 24% advance from recent lows.

At the same time, profitability has returned across multiple investor groups. That is constructive for market confidence, but it also creates an obvious source of selling pressure: holders who spent weeks or months underwater suddenly have an opportunity to exit at a gain.

XRP Leads the Large-Cap Retreat

A spectacular rebound meets leveraged resistance

XRP has been one of the clearest examples of how quickly sentiment can change. The token recently posted exceptionally strong weekly gains, at one stage approaching 45% depending on the measurement window. It has since surrendered part of that advance and emerged among the weakest major cryptocurrencies during the latest daily pullback.

That does not necessarily mean the broader XRP rally is finished. It does, however, underline the risks created when prices rise vertically over a short period.

Derivatives data make the situation particularly important. CryptoQuant figures reportedly show XRP’s estimated leverage ratio on Binance reaching its highest level since January. Long positions also outnumber shorts, while futures activity is running at multiples of spot-market volume.

Futures could magnify the next XRP move

Heavy leverage can accelerate moves in either direction. If XRP climbs again, traders betting against the token may be forced to close positions, adding fuel to the advance. But a deeper decline could liquidate leveraged longs and create a self-reinforcing sell-off.

This makes XRP leverage one of the variables worth monitoring after the latest pullback. Strong underlying demand and aggressive derivatives speculation can coexist, but they produce very different risk profiles.

For traders, the distinction between spot buying and leveraged positioning matters as much as the headline percentage gain.

Also Read: XRP Price Surges as ETF Inflows Hit $39.8M and Institutional Demand Returns

Federal Reserve Expectations Complicate the Crypto Outlook

Markets confront the possibility of tighter policy

The biggest uncertainty may be developing outside crypto itself. Traders have begun entertaining the possibility that the Federal Reserve could eventually raise interest rates, a scenario that would challenge expectations for a friendlier liquidity environment.

Recent US PCE inflation data arrived slightly hotter than anticipated, applying pressure to Bitcoin and other risk-sensitive assets. Even a modest shift in expectations can matter because higher anticipated interest rates tend to support bond yields and make non-yielding or speculative assets relatively less attractive.

A Fed rate hike is far from a simple certainty based on these signals alone. Markets constantly reprice the probability of future decisions as inflation, employment and economic-growth data arrive. Still, the fact that tighter policy is entering the conversation creates another obstacle for the Bitcoin price near $80,000.

Jackson Hole puts Kevin Warsh in focus

Attention is now turning toward Federal Reserve Chair Kevin Warsh’s keynote address at the Jackson Hole gathering on Friday. Investors will examine his language for clues about inflation, interest rates and the conditions required for future policy changes.

For crypto markets, the details could be critical. A message emphasizing persistent inflation risks could strengthen expectations for tighter conditions. More balanced language could instead reassure investors who expect liquidity to remain supportive.

The reaction of Treasury yields and the US dollar following the speech may ultimately matter more to Bitcoin than any isolated phrase.

ETF Demand and Derivatives Define the $80K Battle

Institutional inflows provide an important counterweight

The macro uncertainty arrives while spot Bitcoin ETF demand appears to be improving. Reported August Bitcoin ETF inflows above $3 billion indicate that regulated investment products have attracted substantial fresh capital during the recovery.

ETF flows matter because they provide another window into investor demand beyond crypto-native exchanges. Continued inflows could help absorb selling from investors taking profits after the recent surge.

Infrastructure surrounding those products is evolving as well. ETF providers have been working to make it easier for large Bitcoin holders to exchange cryptocurrency exposure for ETF shares, potentially deepening connections between self-custodied BTC and conventional financial markets.

That does not guarantee higher prices. Bitcoin ETF inflows can reverse, and strong demand in one segment may be outweighed by selling elsewhere. Nevertheless, persistent institutional buying would strengthen the case that the rally has broader foundations than short-term speculation.

Options may keep volatility concentrated near key levels

Derivatives positioning adds another layer around $75,000 and $80,000. Significant options exposure around these strikes ahead of a major expiry could influence dealer hedging and amplify short-term volatility.

Bitcoin therefore enters an unusually dense zone of competing forces: ETF demand, profit-taking, derivatives positioning and renewed Federal Reserve uncertainty are all affecting the same market at once.

Bitcoin Dominance Shows Where Investors Are Hiding

BTC has outpaced much of the broader market

Another striking feature of the latest crypto market rally is Bitcoin’s relative strength. While total digital-asset capitalization has recovered, Bitcoin has advanced faster than much of the broader market, pushing its share of overall crypto value higher.

Rising Bitcoin dominance can indicate that investors prefer the market’s largest and most liquid asset when uncertainty remains elevated. It can also make conditions harder for altcoins, particularly those already burdened by aggressive leverage.

XRP’s retreat illustrates that divergence. Even after huge weekly gains, its leveraged futures market makes the token more vulnerable to abrupt reversals than raw performance figures might suggest.

The next move hinges on holding recovered ground

Bitcoin’s challenge is now less about proving it can rally and more about demonstrating that recent gains can survive adverse macro headlines.

A sustained move above $80,000 could reinforce the improving technical and on-chain picture. Conversely, repeated rejection around that threshold could encourage traders to lock in profits and test support deeper in the $70,000s.

With Fed expectations shifting, major derivatives positions approaching settlement and ETF demand running strongly, volatility could remain elevated. The Bitcoin price has recovered dramatically, but the coming sessions may reveal whether this was the beginning of a more durable trend or simply an exceptionally sharp rebound.

Originally published at https://cryptonews.guru on August 27, 2026.

Bitcoin Price Stalls as Fed Fears Pressure XRP was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.

Bitcoin Price Analysis: BTC Approaches Critical $80K Resistance Can the Breakout Continue? — Crypto Guru

Bitcoin (BTC) is back at the center of the crypto market after a powerful recovery from the $60,000-$70,000 zone. But with BTC now trading around $79,000-$80,000, the rally is entering a much more important technical area.

The latest Bitcoin price action shows something interesting across the daily, weekly, and monthly charts: the market has broken out of a long-term descending structure, but Bitcoin has now reached a major resistance zone that could determine whether this recovery develops into a much larger bullish trend or pauses for another correction.

At the same time, the technical breakout is being supported by renewed institutional demand. U.S. spot Bitcoin ETFs recorded roughly $1.6 billion of inflows from Monday through Thursday last week, while the seven-session total recently reached around $2.5 billion, according to Dow Jones Market Data cited by The Wall Street Journal.

So, is Bitcoin finally preparing for another major move higher?

The charts suggest that $80,000-$84,000 is the answer.

Bitcoin Breaks Out of Its Long-Term Downtrend

The most important development on the daily chart is the break above the descending trendline that had been controlling Bitcoin’s recovery for months.

After falling sharply from the previous cycle high, BTC spent a significant period trading inside a broad declining structure. The lower part of that structure repeatedly pushed Bitcoin toward the $58,000-$62,000 area, while the upper trendline consistently rejected rallies.

That changed recently.

Bitcoin first established a base around the $60,000-$65,000 region, then began creating higher lows. The move eventually accelerated, pushing BTC through the descending trendline and back above $70,000.

The breakout was not a small move.

Bitcoin quickly moved toward $80,000, confirming that buyers were willing to chase price significantly higher.

From a technical perspective, this is an important improvement because the market has moved from:

lower highs + lower lows

toward: higher lows + breakout + recovery toward previous resistance.

However, a breakout is only meaningful if Bitcoin can hold above the structure after the initial move.

And that brings us to the most important level on the chart.

The daily, weekly and monthly charts all point toward the same area.

Bitcoin is currently approaching a broad resistance zone around $80,000-$84,000.

This is not simply an arbitrary horizontal level.

Historically, this area has acted as an important battlefield between buyers and sellers. On the weekly chart, the zone sits directly around the current price, while the monthly chart shows the same region as a major resistance area.

The daily chart makes the situation even more interesting.

BTC has already broken above the descending trendline and is now testing the horizontal resistance zone.

This creates two possible scenarios.

Bullish scenario: clean breakout

If Bitcoin can achieve a strong daily and preferably weekly close above $83,000-$84,000, the current structure would become significantly more bullish.

That would mean buyers have not only broken the descending trendline but have also overcome the major horizontal resistance sitting directly above it.

In that situation, the next major areas to watch would be:

The final zone is particularly important on the weekly and monthly charts because it corresponds with the major resistance area drawn near the previous cycle highs.

A move toward $100,000 would therefore be a realistic intermediate target if BTC confirms the breakout.

There is also a reason not to become overly bullish too quickly.

Bitcoin has already experienced a substantial recovery.

Recent market data shows BTC briefly trading above $81,000, before falling back below $80,000. Profit-taking around the psychological $80,000 level has already appeared.

That makes the current area a potential distribution zone.

If BTC repeatedly fails to close above $80,000-$84,000, sellers could regain control.

The first important downside area would be around $70,000, followed by the broader $60,000-$65,000 support zone visible on the charts.

Interestingly, this lower yellow zone has already played an important role during the current structure.

Bitcoin spent months consolidating inside this area before the latest breakout.

That means a pullback toward $65,000-$70,000 would not necessarily destroy the bullish thesis. In fact, if Bitcoin were to retest this region and successfully establish a higher low, it could provide a much stronger foundation for another attempt at $80,000+.

The key difference would be how Bitcoin reacts at support.

The technical setup is happening at a time when institutional demand for Bitcoin has improved considerably.

U.S. spot Bitcoin ETFs recorded $1.92 billion in net inflows during the week ending August 21, their strongest weekly performance since October 2025.

The buying continued afterward.

On August 24, U.S. spot Bitcoin ETFs reportedly attracted approximately $337.6 million, with BlackRock’s IBIT accounting for more than $200 million of the inflows.

On August 26, another $232.12 million entered spot Bitcoin ETFs.

And on August 27, Bitwise reported around $22 million of Bitcoin inflows among its U.S. crypto ETPs.

This matters because Bitcoin’s current recovery isn’t being driven exclusively by retail traders chasing a green candle.

Institutional capital is participating.

That doesn’t guarantee that Bitcoin will continue higher, but it gives the rally a much healthier underlying demand profile than a purely speculative move.

There is another factor behind Bitcoin’s recent strength: the broader macroeconomic environment.

Bitcoin’s rally has coincided with renewed concerns surrounding the U.S. dollar, government debt and potential currency debasement.

The U.S. Treasury’s decision to increase purchases of longer-dated Treasury securities has contributed to expectations that policymakers are willing to support liquidity and stabilize the bond market. Bitcoin and gold both benefited from this narrative.

This is particularly important because Bitcoin is increasingly being traded as a macro asset rather than simply as a cryptocurrency.

Investors who are concerned about:

• government debt,
• currency debasement,
• inflation,
• monetary policy,
• and declining confidence in fiat currencies

can increasingly access Bitcoin through regulated ETFs.

That creates a very different demand structure compared with previous Bitcoin cycles.

However, macro risks haven’t disappeared.

Markets are currently watching the Federal Reserve closely, particularly around the Jackson Hole event and future interest-rate expectations. Meanwhile, September brings additional risks involving inflation, central-bank policy and geopolitical uncertainty.

So Bitcoin’s bullish setup still has an important condition:

The weekly chart provides perhaps the clearest picture.

Bitcoin has moved from the $60,000-$65,000 accumulation/support area toward the $80,000 resistance zone.

The move has also taken BTC back above the descending trend structure.

But the weekly candle is now approaching the exact area where sellers previously appeared.

This makes the next weekly close extremely important.

A weekly close above the resistance zone would significantly strengthen the argument that the larger correction is ending.

Conversely, a long upper wick followed by a bearish weekly close would warn that Bitcoin is still trapped below major resistance.

For long-term traders, the weekly close is more important than an intraday spike above $80,000.

Bitcoin can trade above $80,000 for several hours and still fail the breakout.

What matters is whether buyers can hold the level.

Based on the multi-timeframe structure shown in the charts, these are the major levels I would watch:

The most important level isn’t necessarily the highest target.

Bitcoin needs to prove that the old resistance has become new support.

My reading of the current structure is cautiously bullish, but not blindly bullish.

The reason is simple.

The technical structure has improved significantly:

Long-term support → accumulation → higher lows → descending trendline breakout → $80K retest

At the same time, ETF inflows have returned strongly and macro conditions have provided another catalyst for Bitcoin and other hard assets.

But Bitcoin is now standing directly underneath one of its most important resistance zones.

If BTC breaks and holds $84K:

The probability of a move toward $90K and then $95K-$100K increases significantly.

A sustained move above $100K would open the door toward the $110K-$125K region, which is the major upside area highlighted on the higher-timeframe charts.

If BTC gets rejected:

A correction toward $70K would be the first level to watch.

If $70K fails, the larger $60K-$65K zone becomes critical.

Importantly, a pullback does not automatically mean the bullish structure is dead. As long as Bitcoin continues to establish higher lows and maintains the broader breakout structure, dips could simply represent retests rather than the beginning of another major bear trend.

Bitcoin has changed the conversation.

A few weeks ago, the market was focused on whether BTC could hold the $60,000-$65,000 region. Today, the discussion is about whether Bitcoin can reclaim $80,000 and potentially challenge $100,000 again.

The technical chart supports the idea of a recovery: Bitcoin has broken a major descending trendline and moved aggressively out of its long consolidation zone.

The fundamental backdrop is also improving. Spot Bitcoin ETF inflows have returned, institutional demand has strengthened, and concerns surrounding the dollar, government debt and liquidity are supporting demand for alternative assets.

But the market has reached a decision point.

$80K-$84K is the line in the sand.

A confirmed breakout above this region could transform the current recovery into a much larger Bitcoin rally, with $90K, $100K and eventually $120K+ becoming increasingly relevant.

A rejection, on the other hand, could send BTC back toward $70K or even $60K-$65K for another test of demand.

For now, the chart is bullish above the breakout structure, but confirmation above $84K is still needed.

Bitcoin doesn’t need to break $100,000 today.

First, it needs to prove that $80,000 is no longer resistance.

This analysis is based on the supplied BTC/USDT charts and recent market developments. It is for informational purposes only and should not be considered financial advice.

Originally published at https://cryptonews.guru on August 28, 2026.

Bitcoin Price Analysis: BTC Approaches Critical $80K Resistance Can the Breakout Continue? was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.

Franklin Templeton is expanding its tokenized fund business in Asia through a new partnership with HashKey Exchange.

On August 25, 2026, HashKey added the Franklin OnChain U.S. Government Liquidity Fund (grBENJI) to its Earn Channel for eligible professional investors in Hong Kong.

The launch gives investors access to a blockchain-based version of Franklin Templeton’s U.S. government money-market fund, as demand for tokenized Treasury products continues to grow.

What Is grBENJI?

grBENJI is linked to Franklin Templeton’s Franklin OnChain U.S. Government Money Fund (FOBXX), also known through the BENJI token ecosystem.

Franklin Templeton launched the fund on April 6, 2021. It was among the first U.S.-registered mutual funds to use a public blockchain for transaction processing and ownership records.

The underlying investment strategy remains traditional.

The fund invests primarily in U.S. government securities, cash and repurchase agreements backed by government securities or cash. It aims to provide income while maintaining liquidity and a stable $1 share price.

That makes BENJI different from a stablecoin such as USDT or USDC. BENJI represents an interest in a regulated money-market fund, while stablecoins are primarily designed to maintain a digital currency peg.

How Large Is Franklin’s Tokenized Fund?

Franklin Templeton’s official fund data shows $753.24 million in total net assets as of June 30, 2026.

The fund’s recent yield has remained above 3%. As of August 2026, Franklin reported a 7-day current yield of 3.56%.

The figure can change as short-term interest rates and portfolio conditions change, so investors should treat the yield as a point-in-time figure rather than a fixed return.

The fund is part of a much larger asset-management business. Franklin Templeton reported $1.80 trillion in preliminary total assets under management as of July 31, 2026.

Who Can Buy grBENJI on HashKey?

The HashKey launch is currently focused on eligible professional investors in Hong Kong.

Through HashKey’s Earn Channel, eligible investors can access the tokenized fund through a regulated digital-asset platform.

This is important because Franklin Templeton already has the fund and blockchain infrastructure. HashKey adds the distribution channel in Asia.

In other words, the partnership connects a traditional global asset manager’s tokenized investment product with a regulated digital-asset marketplace.

Why Is This Launch Important?

The timing is significant.

Tokenized Treasury and money-market products have become one of the fastest-growing areas of the real-world asset market. Investors can gain exposure to traditional short-term government assets while using blockchain-based infrastructure for ownership and transactions.

Franklin Templeton has also continued to engage with U.S. regulators over its blockchain-based fund infrastructure.

On August 12, 2026, SEC staff issued a no-action letter addressing certain custody arrangements involving Franklin Templeton’s OnChain Funds. While the letter does not represent blanket SEC approval for tokenized funds, it shows that regulators are increasingly examining how traditional funds can operate with blockchain-based infrastructure.

Tokenized Treasury Market Reaches $15.64B

The HashKey launch comes as the tokenized U.S. Treasury market continues to expand.

According to the RWA.xyz data in the supplied research, the combined market for tokenized U.S. Treasury bills, notes, bonds and Treasury-focused money-market funds reached approximately $15.64 billion as of August 24, 2026.

The market included:

• 87 products
• 66,031 holders
• $15.64 billion in market value

The market was around $6.51 billion in July 2025, meaning it has grown approximately 140% in one year.

This rapid expansion has attracted competition from major financial institutions and digital-asset firms.

BENJI vs. BUIDL, USYC and Ondo

Franklin Templeton is competing with several major tokenized Treasury products.

BlackRock’s BUIDL, Circle’s USYC, and Ondo Finance’s OUSG and USDY are among the better-known products in the market.

BlackRock’s BUIDL has an AUM of roughly $2.6 billion based on the supplied data, while Circle’s USYC is around $3 billion.

Franklin’s advantage is its early start. BENJI launched in 2021, giving the firm several years of experience with blockchain-based fund infrastructure before tokenized Treasuries became a major institutional trend.

What Does the HashKey Partnership Mean?

The Franklin Templeton-HashKey launch is less about creating another crypto token and more about expanding access to tokenized traditional assets.

Franklin brings the regulated investment product and established tokenization infrastructure. HashKey brings a regulated digital-asset distribution platform in Hong Kong.

For investors, the proposition is simple:

U.S. government money-market exposure + dollar-denominated yield + blockchain infrastructure.

As the tokenized Treasury market moves beyond the experimental stage, partnerships like this could help determine whether tokenized funds become a mainstream part of institutional finance.

For Franklin Templeton, the HashKey launch marks another step in taking BENJI from an early blockchain-based fund experiment to a broader institutional financial product in Asia.

Why Franklin Templeton’s BENJI Expansion Could Matter More Than You Think was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.