CPI jolt flips Bitcoin from $76K to $79K—QCP calls 5% yields the ‘worst mix’ as traders eye Fed risk
Bitcoin rebounded toward $79,000 on Friday after the latest US Consumer Price Index (CPI) release, according to TradingView data cited by Cointelegraph in the source article. The move followed a brief drop to roughly $76,000 and left BTC up more than 3% on the day, mirroring a late-session turn higher in US equities.
Inflation print: headline in line, core hotter
The Bureau of Labor Statistics (BLS) reported headline CPI at 3.4% year over year for August. In the same release, the BLS noted gasoline prices rose 3.9% month over month and the overall energy index increased 2.1% in August. The source article states core CPI rose 0.3% month over month, above the 0.2% consensus.
Markets whipsaw as yields spike, then ease
US stocks flipped green after an early dip, with the S&P 500 up about 1% and the Nasdaq Composite up 1.1% at the time referenced in the source. Long-end Treasury yields whipsawed: the 30‑year briefly touched its highest level since June 2004 before retreating to 5.309%, per the source’s TradingView chart attribution. “This is a nervous market,” The Kobeissi Letter wrote on X, as quoted in the source.
Traders eye the Fed; odds cited as rising
The source article cites CME Group’s FedWatch Tool indicating the implied probability of a 25 bp move at the September meeting rose to 85%, up from 60% a week earlier. (See factual cautions below.)
QCP: High yields are a headwind for Bitcoin
In analysis quoted by the source, QCP Capital warned that rising US yields driven by tighter policy expectations and risk premia—rather than growth—create “the worst mix for Bitcoin: a competing 5% risk-free rate without the nominal-growth impulse that usually accompanies yield moves.” QCP argued that this undercuts the narrative behind Bitcoin’s late‑August climb and that BTC could benefit later as Treasury buyback operations inject liquidity, according to the source’s summary of QCP’s view.
Fed split, watch the data
The source references Reuters reporting that Federal Reserve Governor Christopher Waller said he could support holding rates if inflation shows signs of disinflation, adding: “What’s the cost of waiting one meeting? Hiking 25 basis points, one meeting right now, is not going to bring the CPI down to 2%,” per Reuters as cited.
