Bitcoin trades at $79,000, next week’s US inflation data to test rate-cut hopes and crypto valuations

Bitcoin traded near the $79,000 mark as focus shifts to next week’s inflation data. Experts believe a softer CPI could bring rate-cut expectations back into focus, while a higher-than-expected reading would support the higher-for-longer view and keep pressure on crypto valuation. The cryptocurrency was trading at $79,644 mark.

In the past 24 hours, Bitcoin was down 1.8% and Ethereum was down 2.3% to trade at $2,452 mark. Among the major altcoins, BNB, XRP, Solana, Hyperliquid, Dogecoin and Cardano were down 5.4% whereas Tron was up 0.9%. The global crypto market capitalisation edged down 1.4% to $2.77 trillion, according to Coingecko.

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Riya Sehgal, Research Analyst, Delta Exchange said Crypto markets headed into the weekend after a sharp reversal highlighted the market’s sensitivity to U.S. monetary policy. Bitcoin moved above $82,000 as expectations of a September rate hike eased and institutional demand returned. Ethereum reclaimed $2,500. The move reversed after Friday’s U.S. jobs data.

Sehgal further said that the rally remains intact, but the next move will depend on macro data. Bitcoin needs to hold the $78,500–$79,000 zone after its rejection near $82,000. Ethereum faces support around $2,440, while $2,500 remains a key level for a recovery.

In the past week, Bitcoin and Ethereum were up 2.5% and 0.4% respectively. Among the major altcoins, BNB, XRP, Hyperliquid, and Cardano rallied up to 4.9% whereas Solana, Tron, Dogecoin corrected upto 2.4%.

Global macro conditions remained mixed but broadly supportive for crypto during the week, said Nischal Shetty, Founder, WazirX. He further said that institutional crypto demand strengthened this week, with ETF products attracting approximately $510 million across four sessions as of September 4.

“Strong inflows on August 31 and September 3 offset the $194.38 million withdrawal on September 1. Bitcoin and Ethereum ETFs were still net negative by September 2, at $135 million and $37 million, respectively.”

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He also said that Bitcoin’s move above $81,000 and Ether’s recovery above $2,500 showed improving spot demand and macro liquidity.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)