Bitcoin’s (BTC) price edged higher on Sept. 10, tracking gains in global stock markets as traders braced for crucial US inflation data and the much-anticipated debate between Vice President Kamala Harris and former President Donald Trump.
Bitcoin price posts usual pre-CPI data gains
BTC’s price jumped by over 9% to reach around $57,375 on Sept. 10, compared to its local low of around $52,570 four days ago. The upside moves appear typical of the gains that occur prior to the US Consumer Price Index (CPI) data release, as shown below.
BTC/USD daily price chart. Source: TradingView
“That’s the liquidity push towards [the $56,000] resistance,” explained Michael van de Poppe, CIO/founder of crypto venture capital firm MN Capital, adding:
“I think we’re going to have some more corrections taking place surrounding CPI before the upward momentum continues. Maybe $54K holds, clear invalidation above $56K for Bitcoin.”
On Sept. 11, the Bureau of Labor Statistics will likely report a 2.6% increase in US inflation in August from a year earlier, according to Bloomberg. Still, that would be the lowest inflation rate in more than three years, raising anticipations that the Fed would at least cut rates by a quarter-point at the end of its Sept 18-19 meeting.
Fed swaps projections as of September 2024. Source: Bloomberg
The crypto market has grown in 2024 primarily due to anticipations that the US Federal Reserve would cut interest rates if the inflation moves closer to its target rate of 2%.
Bitcoin, for instance, is up by over 35% year-to-date, suggesting investors rotated their capital from risk-off assets—such as Treasuries—to riskier markets like cryptocurrencies.
Trump vs. Harris debate
Bitcoin market participants are also focused on the Trump versus Harris debate on Sept. 10, particularly because of their contrasting positions on cryptocurrencies.
Trump’s July endorsement of Bitcoin and the broader crypto sector marked a shift from his earlier stance, creating optimism that, if re-elected, his administration might adopt more favorable policies toward digital assets.
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