Bitcoin Rebounds After CPI Keeps US Inflation at 3.4%

Bitcoin briefly slid toward $76,000 after the latest US inflation data pointed to slightly firmer underlying price pressures than markets expected. The move did not trigger a broader crypto selloff. Bitcoin quickly climbed back above $77,000, while Ethereum and several major altcoins held onto gains during the session. US inflation remains above the Fed's target. The Consumer Price Index rose 0.4% in August, the US Bureau of Labor Statistics reported, accelerating from July's 0.1% increase and matching economists' forecasts. Annual inflation held at 3.4% year over year. Core CPI, which strips out food and energy and is closely watched as a measure of underlying inflation, increased 0.3% on the month versus expectations for 0.2%. Core inflation eased from 2.5% to 2.4%. Gasoline accounted for more than one-third of the monthly CPI increase, jumping 3.9% and lifting the broader energy index by 2.1%. Housing costs rose 0.3%, and food prices increased 0.1%. Bitcoin showed a sharp but short-lived reaction. It initially dropped to about $76,050 after the release, then rebounded to trade above $77,100 at the time of writing. Prices ranged from $76,400 to $79,550 during the session, reflecting a divide among traders over what the inflation data signals for US interest rates ahead of the Federal Reserve's September 15–16 meeting. With core inflation coming in hotter than expected, some investors see the Fed leaning more hawkish, a backdrop that often weighs on risk assets as higher yields become available elsewhere. Ethereum outperformed Bitcoin on the day, trading around $2,543 and up nearly 3.2% after reaching session highs of $2,648. Solana rose about 1.5% to roughly $101, while BNB gained 1.4% to around $723. Dogecoin added 0.5%, and XRP was little changed near $1.35. Some gains were in place before the CPI release and cannot be attributed solely to the inflation result. Still, the market's resilience suggested Bitcoin's initial dip did not spill over across major tokens. Summary: US inflation held at 3.4% and monthly core CPI came in above expectations. Bitcoin recovered above $77,000 after briefly dipping toward $76,000 following the report.