Bitcoin and Ether Rise as Inflation Data Meets Market Expectations

Bitcoin and Ether posted gains on Friday as the latest U.S. inflation data did little to shift the market’s outlook for Federal Reserve interest rate policy.

The Consumer Price Index (CPI) for August showed headline inflation accelerated slightly, driven primarily by rising energy costs. However, the core CPI, which excludes volatile food and energy prices, continued its cooling trend. This mixed report was largely in line with analyst forecasts, leaving traders to maintain their existing expectations for the Fed’s path.

Bitget analyst Lewis Huang highlighted the divergence within the data, noting the acceleration in headline inflation was offset by the continued easing in the core measure. This dynamic suggests underlying price pressures may be moderating even as temporary factors like energy cause fluctuations.

The muted reaction in traditional markets, with Treasury yields showing little movement, translated into a stable environment for digital assets. The lack of a hawkish surprise allowed Bitcoin and Ether to build on recent momentum, with traders largely viewing the report as a non-event for near-term monetary policy.