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.
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Bitcoin slid Friday after a better-than-expected labor report showed that the U.S. job market accelerated in August.
The leading cryptocurrency was recently trading for close to $79,764 after dropping as low as $78,706 earlier in the morning in New York. It’s currently down over 1% over a 24-hour period. On Thursday, the coin soared above $82,000.
The Federal Reserve is typically more likely to raise interest rates when the labor market is strong, because more people employed means more spending, and more spending can push inflation up.
Federal Reserve Chair Kevin Warsh last week gave his first major speech as head of the U.S. central bank and said he had “more work to do” to fight inflation. Bitcoin has typically done well in a low-interest rate environment.
Traders currently view a U.S. Federal Reserve interest rate hike at the upcoming September 15–16 policy meeting as roughly a 50% to 60% probability.
But U.S. President Donald Trump on Friday demanded the Federal Reserve slash interest rates.
Writing on his social media platform Truth Social, Trump said: “Lower the interest rates because the U.S.A. is a much stronger credit than it was just a short time ago!”
He added: “We should have the LOWEST RATE of any country in the World, like ‘the old days.'”
Bitcoin has decoupled from stocks recently as investors have renewed concerns around dollar debasement.
The cryptocurrency started surging last month, after the U.S. Treasury Department said it would more than double the size of its government debt repurchases. The coin had its best run in three years and third best August ever.
The much-talked about debasement trade is back in the spotlight, and bitcoin has been trading in lockstep with gold, according to analysts. The so-called debasement trade is when investors buy an asset as a way to hedge against a currency losing value.
News dropped last month that U.S. public debt exceeded $40 trillion for the first time too. Excessive debt also undermines confidence in the dollar, making assets like bitcoin and gold attractive.
Bitcoin dropped, then popped after Federal Reserve Chair Kevin Warsh gave his first major speech as head of the U.S. central bank and said he had “more work to do” to fight inflation.
The leading cryptocurrency was recently trading for $79,474 after dropping as low as $78,630 before quickly rising again.
Bitcoin has typically done well in a low interest rate environment but the Federal Reserve has been reluctant to lower borrowing costs due to sticky inflation in the world’s biggest economy.
“But on the price-stability side of our mandate, the numbers are more concerning,” Warsh said after talking about employment.
He added: “We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed. Otherwise, we have work to do.”
Bitcoin has in the past dropped on news that the Federal Reserve thinks inflation is too high because it means less chance of a rate cut. Following Warsh’s speech, traders priced in a 50% chance of rate hike in September.
But Bitcoin has appeared to — at least for now — shrug off the speech.
Bitcoin’s started surging last week after the U.S. Treasury Secretary Scott Bessent announced the department would double the size of its long-dated bond buybacks.
The news sent yields down lower, and the dollar slid while non-yielding assets like bitcoin and gold jumped.
Positive regulatory news also helped the coin: President Donald Trump last week said that the long-awaited crypto Clarity Act was a “very, very powerful” piece of legislation, and urged lawmakers to get it over the line.
The proposed law will establish a framework for distinguishing between digital assets that are securities, commodities or payment stablecoins — legislation that the crypto industry has long called for.
The Federal Reserve Bank of Kansas City is on Friday holding the annual event at Jackson Hole, Wyoming, where central bankers, Federal Reserve officials, policymakers and academics will gather to discuss “Financial Innovation: Implications for Payments and Policy.”
According to the Federal Reserve Bank of Kansas City website, this year’s event will touch on how “recent years have seen a dramatic increase in innovation in financial intermediation and payments,” including new technologies such as “cryptocurrencies and stablecoins.”
Bitcoin again closed in on the $81,000 mark on Thursday before dropping again as its stellar week continued.
The leading cryptocurrency was recently trading for $80,236 after notching as high as $80,793 earlier in the day in New York.
Bitcoin is now up more than 2% over the past day after gaining 10% in a week. The coin’s rise comes ahead of Federal Reserve Chair Kevin Warsh’s keynote on Friday where he is expected to talk about digital payments — including crypto.
JUST IN: The Bitcoin Fear & Greed Index is now up to 71, "Greed"
The Federal Reserve Bank of Kansas City will hold the annual event at Jackson Hole, Wyoming, where central bankers, Federal Reserve officials, policymakers and academics will gather to discuss “Financial Innovation: Implications for Payments and Policy.”
According to the Federal Reserve Bank of Kansas City website, this year’s event will touch on how “recent years have seen a dramatic increase in innovation in financial intermediation and payments,” including new technologies such as “cryptocurrencies and stablecoins.”
It will be Warsh’s first major speech as chairman of the Federal Reserve. Warsh, who has made pro-Bitcoin statements in the past, has been reluctant to lower interest rates; President Donald Trump, who nominated Warsh, has since last year pushed for borrowing costs to come down.
Bitcoin in the past has done well in a low interest rate environment.
Bitcoin’s run started last week when it sustained its biggest run in years following positive regulatory news and an announcement from the U.S. Treasury.
But recent positive regulatory news has helped the coin. While a vote on the long-awaited crypto Clarity Act has been delayed until September, President Donald Trump last week said that the bill was a “very, very powerful” piece of legislation, and urged lawmakers to get it over the line.
The proposed law will establish a framework for distinguishing between digital assets that are securities, commodities or payment stablecoins — legislation that the crypto industry has long called for.
And U.S. Treasury Secretary Scott Bessent also last week announced the department would double the size of its long-dated bond buybacks.
The news sent yields down lower; lower long-term yields reduces the opportunity cost of holding non-yielding assets like bitcoin and gold, and generally supports risk-on sentiment.
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.
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
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.
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