Bitcoin [BTC] Bounced Back on Thursday after Slower August Inflation Data

The world's largest digital asset reversed itself and was valued at $58k at press time. Reacting to the post-CPI move, Joshua Kang

Bitcoin [BTC] price reacted sharply to the slower-than-expected August inflation data. While the US CPI (Consumer Price Index) rose 0.2% last month, meeting analysts’ expectations, the core CPI was slightly hotter at 0.3%, higher than the forecasted 0.2%. The data caused BTC’s price to decline to $55.5k on the charts.

The drop also preceded investors’ risk-off mode, as BTC saw $750 million outflows from exchanges on 10 September – A day before the CPI data was even released.

However, the world’s largest digital asset reversed itself and was valued at $58k at press time. Reacting to the post-CPI move, Joshua Kang, Head of Trading at Mozaik Capital, had this to say,

“I think we can use the dips to scale slowly. There may be some volatility before or after the FOMC, but volume should drive a sustained move up in October.”

Following the slower CPI, the market seemed to be pricing a 85% chance of a 25-basis-point (bps) Fed interest rate cut in the next FOMC meeting.

Demand surged for Bitcoin post-CPI data, painting a bullish outlook for Q4, crypto trading firm QCP Capital observed.

“Options activity reflects this, with growing demand for Calls with Oct-Dec expiries.”

Alameda/FTX unstake $23.75M SOL

A wallet connected to Alameda/FTX withdrew 177,693 SOL from Solana PoS staking and still had $951 million SOL staked. The move came on the back of FTX’s repayment for victims edging closer.

While FTX has reportedly sold the majority of its SOL through OTC (over-the-counter) markets, market analyst EmberCN suggested that the unstaked SOL could hit central exchanges soon.

If so, this could put downward pressure on SOL. At press time, the altcoin was trading at $134, showing a slight recovery from its yearly support at $128.

Swift unveils support for digital asset transfers

In other news, Swift will support regulated digital and real-world tokenized asset transfers as part of its “global interoperability strategy.” A part of the firm’s statement read,

“Our vision is for our members to be able to use their Swift connection to transact interchangeably using both existing and emerging asset and currency types.”

The update follows a series of blockchain payment experiments last year that involved Chainlink, Ethereum, and several banks, including BNY Mellon. The move will enable buyers to settle and exchange tokenized assets in real time through the Swift network.