Bitcoin spikes toward $80K as US CPI data delivers new 22-year high in bond yields

Bitcoin (BTC) returned to $79,000 on Friday after key US inflation data broadly conformed to expectations.Key points:US core CPI inflation data gained 0.3% month-on-month, surpassing expectations of 0.2%.Implied probabilities of an interest-rate hike by the Federal Reserve at the Sep. 16 meeting rose to 85%.US bond yields will cause Bitcoin pain amid Fed policy tightening, QCP analysis warns.Bitcoin jumps 3% as “nervous” market digests CPI numbersData from TradingView showed renewed BTC price volatility ensuing after the August release of the Consumer Price Index (CPI), which came in at 3.4% year-on-year. BTC/USD one-hour chart. Source: Cointelegraph/TradingViewAfter initially dropping to $76,000, BTC/USD quickly reversed upward, gaining more than 3% on the day.The move echoed US equities, which also turned green after a weak start to the session. This was catalyzed by CPI conforming to expectations only a day after the Producer Price Index (PPI) overshot. The S&P 500 was up 1% at the time of writing, while the tech-heavy Nasdaq Composite Index gained 1.1%.S&P 500 one-hour chart. Source: Cointelegraph/TradingViewUS bond yields also saw snap volatility. On the back of the CP...