Bitcoin Surpasses $114,000 as Rate Cut Hopes Rise on US Inflation Data
The cryptocurrency market has just recorded a new step forward as Bitcoin (BTC) broke above the $114,000 mark, marking a monthly high, after US economic data showed that price pressures are easing.
Inflation unexpectedly cools
The US Bureau of Labor Statistics reported that the producer price index (PPI) fell 0.1% in August, contrary to the forecast of a 0.3% increase. This is an important signal, as PPI is often an early indicator of consumer price trends and production costs in the economy.
This development has quickly changed market expectations: investors are now betting more heavily on the possibility that the Federal Reserve (Fed) will cut interest rates more aggressively, even by 50 basis points at the upcoming meeting.
ETF Inflows Return
The optimism was also evident in the $757 million inflow into Bitcoin ETFs on September 10 alone – enough to erase all of last month’s net outflows. This shows that institutional confidence in Bitcoin is recovering, with loose monetary policy as the main driver.
Bitcoin benefits from the macro environment
Immediately after the PPI data, Bitcoin rebounded sharply from the $110,000 region, quickly climbing to an intraday high of $114,471. This is seen as a direct response to expectations of lower interest rates, which often drive money into risky assets and scarce assets like BTC.
Waiting for CPI data
However, the more important challenge remains the Consumer Price Index (CPI) report – the Fed’s preferred inflation measure – scheduled for release later on September 11. If the data continues to show a cooling trend, the market could see a new wave of Bitcoin and other digital assets rallying.
👉 Summary: The new developments confirm Bitcoin's role as a hedge against macroeconomic fluctuations. In the context of US inflation showing signs of weakening and the Fed's expected policy easing, Bitcoin is returning to its leading position in global risk portfolios.
