Bitcoin price today: rises to $114k as rate cut bets grow before CPI test

Investing.com-- Bitcoin rose on Thursday, extending overnight gains as soft U.S. producer inflation data fueled increased optimism that interest rate cuts were imminent, with focus squarely on upcoming data on consumer prices. 

The world’s largest cryptocurrency led gains across major cryptos as risk appetite was boosted by the prospect of the Federal Reserve cutting interest rates as soon as next week. 

But some of this optimism was dulled by anticipation of key consumer price index inflation data for August, which is expected to show an increase in prices as President Donald Trump’s trade tariffs took effect. 

Bitcoin rose 2.3% to $114,076.8 by 01:19 ET (05:19 GMT). The crypto was still nursing steep losses logged in a tumble from mid-August record highs. 

Bitcoin buoyed by rate cut bets, CPI data on tap

Bitcoin’s gains this week came chiefly after U.S. producer price index data read softer than expected for August.

The print helped quell some concerns that Trump’s trade tariffs will spark an outsized rise in inflation, and saw markets largely maintain bets on an interest rate cut by the Fed next week.

Markets are pricing in a 93.7% chance the Fed will cut rates by 25 basis points during its Sept 16-17 meeting, and a 6.3% chance for a 50 bps cut, CME Fedwatch showed.

Lower rates stand to benefit crypto, given that they free up more market liquidity for investing in speculative assets. The Fed’s steady rate cuts through 2024 were a major point of support for Bitcoin, which rallied exponentially last year. 

Focus is now on upcoming CPI data for more insight into the Fed’s plan. Any signs of cooling inflation are likely to further boost risk appetite and crypto prices.

Figure, Gemini in focus amid crypto IPO boom 

Crypto markets were also looking to a slew of major U.S. initial public offerings in the industry scheduled for this week. 

Stablecoin operator Figure Technology raised at least $787 million in its U.S. IPO on Wednesday, selling 31.5 million shares at $25 each, above its previously guided range. The size of the share offering was also increased.

This came just a day after the Winklevoss twins-backed exchange Gemini hiked its proposed IPO price range, and said it was targeting a valuation of up to $3.08 billion. 

Circle Internet Group Inc (NYSE:CRCL), Bullish Inc (NYSE:BLSH), and eToro Group Ltd (NASDAQ:ETOR) all marked strong public market debuts this year, as a flurry of friendly regulations from the Donald Trump administration spurred increased investor interest in the industry. 

Crypto price today: altcoins heady tracking Bitcoin

Broader crypto prices advanced in tandem with Bitcoin on Thursday.

World no.2 crypto Ether rose 2.6% to $4,419.42, while XRP rose 1.5% to $3.0034. 

Solana rose 1.8% and Cardano rose 1.6%.

Among meme tokens, Dogecoin added 4.4%, while $TRUMP lagged with a 0.2% rise.