Bitcoin rebounds past $79,000 as US CPI meets expectations and bond yields spike

Bitcoin (BTC) climbed back above $79,000 on Friday after US consumer price index (CPI) data largely aligned with market expectations. The rally mirrored a broader market bounce, with US equities posting gains and Treasury yields experiencing sharp volatility.

Market reaction to CPI data

The CPI report showed a 0.3% month‑on‑month increase in core inflation, one tenth of a percentage point above the 0.2% forecast. Year‑on‑year, the overall CPI rose 3.4%. The data prompted the CME Group’s FedWatch Tool to raise the implied probability of a 0.25% rate hike at the Federal Reserve’s September 16 meeting to 85%.

Impact on equities and commodities

US stock indexes responded positively: the S&P 500 was up about 1% and the Nasdaq Composite gained roughly 1.1% at the time of writing. Meanwhile, West Texas Intermediate crude oil continued to trade near $100 per barrel, reflecting ongoing geopolitical tensions.

Bond yield volatility

Following the CPI release, the 30‑year Treasury yield surged to its highest level since June 2004 before retreating to 5.309%, highlighting heightened market nervousness. Analysts noted that the combination of rising yields and a risk‑free rate near 5% creates a challenging environment for Bitcoin’s price momentum.

Outlook for Bitcoin

QCP Capital warned that the recent surge in US yields could act as a headwind for Bitcoin, despite the cryptocurrency’s 25% gain in August. The firm suggested that any lasting benefit for Bitcoin would depend on the timing and scale of Treasury debt‑buyback operations, which could eventually provide additional market liquidity.