Bitcoin rebounds above $78K as Fed hike odds hit 81%

Bitcoin has rebounded above $78,000 after U.S. consumer inflation met forecasts in August, although prediction-market traders have raised the chance of a Federal Reserve rate hike to 81%. Summary U.S. consumer prices rose 3.4% annually and 0.4% from July to August. Bitcoin recovered above $78,000 after falling below the $77,000 psychological level. Core monthly inflation exceeded forecasts, even as its annual rate slowed to 2.4%. Polymarket traders placed an 81% chance on a quarter-point Fed hike next week. US CPI has held at 3.4% in August The U.S. Bureau of Labor Statistics reported Friday that the Consumer Price Index rose by a seasonally adjusted 0.4% in August after increasing 0.1% in July. Consumer prices climbed 3.4% over the preceding 12 months, unchanged from July’s annual rate. Both figures matched the forecasts cited in the original report. Still, inflation remained above the Federal Reserve’s 2% target as officials prepared for their Sept. 15–16 policy meeting. Energy costs accounted for much of the monthly increase. According to the BLS, the energy index advanced 2.1% in August, while gasoline prices rose 3.9% and contributed more than one-third of the increase in the ...