Bitcoin [BTC] experienced a rebound on Thursday following the release of slower August inflation figures. The US Consumer Price Index (CPI) rose by 0.2% last month, meeting analysts’ expectations. However, the core CPI showed a slightly higher increase at 0.3%, surpassing the projected 0.2%. This data led to a decrease in BTC’s price to $55.5k on the charts.
Prior to this drop, investors were in a risk-averse mode, resulting in $750 million outflows from exchanges on September 10th, a day before the CPI data was even revealed.
Nevertheless, the largest digital asset worldwide reversed its trajectory and was valued at $58k at the time of writing. Reflecting on the movement post-CPI, Joshua Kang, Head of Trading at Mozaik Capital, highlighted that the market’s attention will be on the upcoming FOMC (Federal Open Market Committee) meeting. Kang stated,
“I believe we should take advantage of the price dips to gradually build positions. There might be some volatility before or after the FOMC meeting, but substantial volume is expected to drive a sustained upward movement in October.”
Post the slower CPI data release, the market appeared to be pricing an 85% possibility of a 25-basis-point (bps) Fed interest rate decrease in the forthcoming FOMC gathering.
Noteworthy data from crypto trading firm QCP Capital revealed a spike in demand for Bitcoin following the CPI statistics, painting a positive picture for Q4. The firm stated,
“This sentiment is mirrored in the options market, with an increasing desire for Call options expiring between October and December.”
Alameda/FTX Withdraw $23.75M SOL from Stake
A wallet associated with Alameda/FTX has retrieved 177,693 SOL from Solana Proof of Stake (PoS) staking, leaving $951 million SOL staked. This move coincided with FTX’s progress in compensating victims of recent events.
Though reports suggest that FTX has largely offloaded its SOL through over-the-counter (OTC) markets, market analyst EmberCN hinted that the unstaked SOL might soon appear on centralized exchanges.
If this unfolds, downward pressure could be exerted on SOL. Currently, the altcoin is trading at $134, slightly above its yearly support level of $128.
Swift Announces Support for Transferring Digital Assets
Swift has introduced support for the transfer of regulated digital and real-world tokenized assets as part of its “global interoperability strategy.” A portion of the firm’s announcement stated,
“Our aspiration is for our members to utilize their Swift connections to seamlessly transact with both existing and emerging asset and currency types.”
This update follows a sequence of blockchain payment trials last year involving Chainlink, Ethereum, and several banks, including BNY Mellon. The enhancement will enable purchasers to settle and trade tokenized assets instantly via the Swift network.