Bitcoin Steadies Near $80,000 as Traders Brace for Key Inflation Data

Bitcoin traded around $79,500 on Monday, pulling back after briefly touching above $82,000 the previous week. The retreat followed Friday’s stronger than expected U.S. jobs report, which showed 162,000 positions added in August, far exceeding forecasts, while unemployment held steady at 4.1%. In response, the probability of a quarter point Federal Reserve rate hike on September 16 climbed to roughly 60%, pushing Treasury yields and the dollar higher while pressuring rate-sensitive assets like bitcoin.

ETF Inflows Continue for Third Straight Week

U.S. spot bitcoin exchange-traded funds attracted $987 million in inflows last week, extending a positive streak to three consecutive weeks. Analysts at QCP Capital suggested the fluctuating daily flows reflect traders repositioning ahead of upcoming economic data rather than a clear directional bet, identifying resistance between $80,000 and $82,000, with support seen around $77,000 to $78,000.

On-Chain Data Points to Steady Recovery

Separately, bitcoin’s realized capitalization, a measure of the price at which coins last moved, has been climbing since late August after months of decline, rising nearly one percent over the past month to surpass $1 trillion. Analysts view this as a sign that bitcoin is changing hands at increasingly higher prices, reinforcing the current price recovery.

All Eyes on Inflation Reports

Traders are now focused on upcoming producer price and consumer price data due later this week, the final major inflation readings before the Fed’s September meeting. Economists expect headline inflation to hold steady, while a cooler core reading could support a pause in rate hikes, whereas a hotter number could bring a hike back into consideration.