Bitcoin, Ether Climb as Inflation Report Leaves Fed Outlook Unchanged

Bitcoin and ether posted gains Friday after the latest U.S. inflation data came in largely as expected, leaving crypto traders with little new information to price into the Federal Reserve’s upcoming rate decision. Bitcoin briefly approached $79,000 before settling near $77,800, while ether climbed above $2,500. The Consumer Price Index rose 0.4% in August, pushing annual inflation to 3.4%, driven mainly by a sharp jump in gasoline prices.

Analysts Say Demand, Not Rates, Now Drives Market

Market strategists noted that core inflation continued easing even as headline numbers rose on energy costs, giving the Fed room to look past the increase. Some analysts pointed out that historically, Bitcoin has posted modest gains in the month following hotter than expected inflation readings.

Solana and Ethereum Show Momentum

Solana is eyeing resistance near $100 with hopes of reaching $130, supported by strong ETF inflows and record transaction volumes. Ethereum’s ecosystem also saw a notable milestone with a new layer-2 network posting rapid revenue growth.