Bitcoin (BTC) recorded its first weekly close above $80,000 since the week of May 11, touching the level on Sunday and ending the week at $80,000, according to TradingView data.
The move comes ahead of the release of August's Producer Price Index (PPI) and Consumer Price Index (CPI) on Thursday and Friday. CPI rose 0.1% month‑on‑month and 3.4% year‑on‑year, matching market expectations. The data, together with a stronger‑than‑expected August jobs report that added 162,000 jobs versus an estimate of 56,000, has pushed the CME Group’s FedWatch Tool to assign a 58.4% probability to a 0.25% rate increase at the Federal Reserve’s September 16 meeting.
Federal Reserve Chair Kevin Warsh, speaking at the Jackson Hole symposium, cautioned that recent inflation readings do not justify a policy shift, noting that underlying price pressures remain above the 2% target. The market’s hawkish tilt persists despite comments from Fed Governor Christopher Waller supporting a pause in hikes.
In Asia, the Japanese yen has been under pressure after the Ministry of Finance reported a $79.57 billion drop in foreign reserves, reflecting record‑size yen interventions that lifted the currency to around ¥155 per dollar. Analysts said the ministry likely sold U.S. Treasuries to fund the intervention, a move that could strain relations with Washington and limit future yen‑support actions.
Traders now price a 0.25% rate hike by the Bank of Japan in its September 18 meeting with a 98% probability, according to Polymarket data. The BOJ’s benchmark rate sits at 1.0%, the highest level since 1995.
On the crypto side, on‑chain analytics firm CryptoQuant reported that Bitcoin’s open interest on derivatives surged from $25.2 billion to $27.53 billion—a 9.24% increase—in a single session on September 3, when BTC briefly rose above $82,000. The firm warned that spot‑market demand remains negative, with outflows outpacing new issuance, suggesting that the recent price rally is being driven primarily by futures traders rather than on‑chain participants.
Mosaic Asset Company noted that strong economic data could support corporate earnings and equities, but highlighted that September traditionally marks the weakest month for stocks, adding seasonal risk to the market outlook.
Overall, Bitcoin’s price action remains confined to a narrow range around $80,000, with liquidity walls near $80,560 limiting further upside, while macro‑economic developments in the United States and Japan continue to shape market sentiment.
