Bitcoin Gains as Markets Weigh Inflation Data Before Fed Decision

Bitcoin Gains — Bitcoin’s price rose alongside a broad crypto market rally on Wednesday as investors digested the latest U.S. inflation figures ahead of a key Federal Reserve interest rate decision.

The Consumer Price Index (CPI) showed annual inflation held steady at 3.4% in August, while the annual core rate, which excludes volatile food and energy prices, cooled. However, a hotter-than-expected monthly core reading kept market expectations for a Fed rate hike at approximately 62%, according to CME FedWatch Tool data.

Bitcoin traded near $77,891, up about 1% on the day. The positive sentiment extended across major altcoins, with Ethereum (ETH) gaining over 5% and Solana (SOL) rising more than 2%.

The market’s focus now shifts to the Federal Open Market Committee’s (FOMC) policy announcement and updated economic projections scheduled for later today. The central bank’s stance on future rate policy will be a critical driver for risk assets, including cryptocurrencies, in the near term.