CoinShares says latest CPI print offers no support for Bitcoin

Bitcoin bulls were hoping the August inflation report would give them something to work with. CoinShares says it didn’t. In a market update published on September 11, the digital asset investment firm laid out why the latest Consumer Price Index data does essentially nothing for Bitcoin’s short-term price trajectory. The headline number came in at 3.4% year-over-year and 0.4% month-over-month, both matching consensus forecasts. But the real problem sits one layer deeper. Core CPI is the villain here Core CPI, which strips out volatile food and energy prices to reveal the stickier inflation underneath, rose 0.3% month-over-month. Wall Street had penciled in 0.2%. CoinShares emphasized that the hotter core reading has meaningfully increased the probability of a Federal Reserve rate hike at the upcoming September 15-16 meeting. For an asset class that has spent years rallying on cheap money and retreating when the liquidity tap tightens, this is not the signal Bitcoin needed. Bitcoin has been trading in the $77,000 to $78,000 range following the CPI release. Previous sessions saw the asset attempt to push above $80,000, but those moves didn’t stick. $243 million heads for the exits Di...