Bitcoin spikes near $80K as CPI matches forecasts

Bitcoin surged to $79,837 on Friday after the U.S. Bureau of Labor Statistics released August Consumer Price Index (CPI) data that aligned with economists’ expectations. The spike put the cryptocurrency on a path to breach the $80,000 level.

Price movement throughout the day

Bitstamp data showed Bitcoin climbing from a one‑week low of $76,651 to above $77,000, then fluctuating between $76,040 and $79,800 before settling near $77,800 by early afternoon. The intraday volatility resulted in a modest daily gain of about 1% and a market capitalization around $1.57 trillion.

Liquidations and market impact

Coinglass reported that long‑position liquidations exceeded $104 million, while short positions were liquidated for roughly $100 million. Total crypto‑market liquidations topped $732 million, with short bets accounting for $424 million of the losses.

Reaction in prediction markets

Despite the CPI matching forecasts, prediction‑market odds for a 25‑basis‑point Federal Reserve rate hike rose to 82%. Economists cited in the source suggested the data makes a rate increase likely.

Commentary from market figures

Billionaire investor Ray Dalio warned that rising long‑term rates and a weakening dollar could create stagflationary pressures, potentially limiting risk‑on assets such as Bitcoin.

Key takeaways

• Bitcoin reached $79,837, near the $80,000 threshold.
• Volatile trading triggered $732 million in crypto liquidations, with $424 million in short‑position losses.
• Prediction‑market odds for a Fed rate hike rose to 82% after the CPI release.
• Analysts linked the CPI data to a higher likelihood of continued monetary tightening.