Bitcoin Climbs Back Past $78K Despite Fed Rate Hike Fears

Bitcoin regained its momentum this week, pushing back above the $78,000 mark. This recovery follows the latest U.S. inflation data, which matched market expectations for August. With the consumer price index steady at 3.4 percent, investors are now weighing how this stability impacts future economic policy.

While the price movement appears positive, the mood in prediction markets is becoming more cautious. Traders now see an 81 percent chance that the Federal Reserve will raise interest rates. Higher rates typically create pressure on riskier assets, so this high probability suggests that investors are bracing for a more aggressive central bank stance.

Market participants are watching closely to see if Bitcoin can hold this level of support. If the Fed moves forward with a rate hike, it could test the resilience of recent gains. For now, the market remains focused on balancing inflation news against the shifting expectations for monetary policy.