Bitcoin consolidates around US$79,000, August PPI data exceeds expectations, 21Shares signals US$100

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Bitcoin consolidates around US$79,000, inflation data triggers market caution

Bitcoin prices stabilized at around US$79,000 after August inflation data slightly exceeded market expectations. This situation has prompted investors to pay renewed attention to macroeconomic factors and market activities. The U.S. Bureau of Labor Statistics (BLS) report showed that the producer price index (PPI) rose 0.4% month-on-month and 5.4% year-on-year.

Inflation data keeps the market cautious

According to the latest released data, both monthly and annual PPI data are in line with analysts 'expectations or slightly higher. Energy prices have played an important role in price increases, with diesel prices soaring 24.1% in August and overall energy costs rising 4.2% month-on-month.

Matt Mena, senior crypto research strategist at 21Shares, described the report as "slightly above expectations" and noted that the market has largely absorbed higher inflation expectations, particularly due to rising oil prices. He observed that Bitcoin could try to move towards $82,000 before the end of September, although a temporary correction towards $75,000 could occur before rising further.

Matt Mena commented that August's PPI data was "slightly above expectations," pointing out: "The market has priced most of the upside due to oil prices, but it is increasingly likely to reach $82,000 at the end of the month, with a possible correction to $75,000 during the period."

Bitcoin rebounded from a low of $77,603 and moved towards the $80,000 level as traders assessed the balance between inflation indicators and continued demand for spot Bitcoin exchange-traded funds (ETFs).

ETF Fund Flow and Altcoin Performance

As of September 4, the U.S. spot cryptocurrency ETF recorded a net inflow of US$1.24 billion, of which products focused on Bitcoin accounted for US$986.85 million, accounting for approximately 79% of the total. During the first six trading days of September, Bitcoin ETFs attracted $603.3 million in inflows.

However, there were continuous outflows in the following two days, with US$46.6 million withdrawn on September 8 and US$120.24 million withdrawn on September 9. This caused the funds 'total net asset value to drop slightly from $99.52 billion to $99.33 billion. Despite the outflow of funds from Bitcoin, products related to Ethereum, XRP and Solana-related successfully attracted new funds during the same period.

Indicators Week ending September 4 6 trading days before September Outflow on September 8-9 Total Crypto ETF Inflows US$1.24 billion - - Bitcoin only US$986.85 million US$603.3 million -US$166.84 million Net Asset Value US$99.52 billion - Falling to US$99.33 billion after the outflow

Mena's forecast targets for the fourth quarter are: BTC reaches US$100,000, ETH reaches US$3,500, Hyperliquid (HYPE) reaches US$100, and Solana (SOL) reaches US$130. He also emphasized that ETH must overcome the $2,500 resistance level to target the $3,000 target.

Exchange inflows and giant whale position positioning

The number of medium-sized bitcoin positions deposited on major exchanges dropped significantly. Since early August, transfers to Binance, Coinbase Pro and Coinbase Prime have dropped by 15.5%, with Binance's own receipts falling from 4,390 BTC to 3,080 BTC, a drop of nearly 30%.

The decrease in exchange inflows created a net difference of 1,160 BTC across platforms, reflecting a shift in trading activity rather than a significant increase in overall selling pressure. Large holders, commonly known as the "giant whale", have maintained a stable balance of approximately 5.22 million BTC since September 2, indicating that there has been little new accumulation behavior by these influential market participants.

Recently, altcoins have performed better than Bitcoin. In the past three weeks, Ethereum has gained 29% while Bitcoin has gained 20%;Hyperliquid (HYPE) is close to the $90 level.

Assets 3-week gain Current Price Ethereum 29% - Bitcoin 20% US$79,000 - 80,000 Hyperliquid (HYPE) - Close to US$90

Upcoming Data and Market Outlook

The market will now turn its attention to the August Consumer Price Index (CPI), which will be released at 8:30 a.m. Eastern Time on Friday. This will be followed by a two-day Fed meeting starting on September 15, which may further affect market sentiment.

Analysts pointed out that deposits of mid-sized bitcoins on exchanges have dropped sharply since August, indicating that selling pressure has decreased as the next CPI report and the Federal Reserve meeting approach.