Bitcoin trades near $115K as CPI data lift sentiments

Synopsis

Bitcoin hit a three-week high near $115,500 after U.S. CPI met expectations at 2.9%, bolstering bets on a Fed rate cut. ETF inflows and easing inflation pressures supported the rally, though resistance above $116K capped gains. Analysts see strong support at $113,700 and potential upside toward $118K–$120K.

Bitcoin was trading at $115,150 on Friday, marking a three-week high after CPI data came in line with expectations.

“Bitcoin is trading strongly at a 3-week high of $115,500, after CPI data came in line with expectations at 2.9%. With a steady inflation metric and softer PPI figures, the market has factored in a 25 bps rate cut next week,” said Edul Patel, CEO of Mudrex.

Also Read | Largecap mutual funds see highest jump in monthly inflows by 33% to Rs 2,834 crore in August. Are investors chasing safety?

“Moreover, the $741 million inflows into Bitcoin ETFs have also added to the upward pressure. If BTC manages to close above the current levels, a bullish trajectory would be confirmed, taking the asset towards $118,000. Meanwhile, the support has also moved up to $113,700, forming a strong base,” Patel added.
Crypto TrackerTOP COINS (₹) Solana21,010 (6.56%)Ethereum400,621 (2.33%)XRP270 (1.87%)BNB80,220 (1.31%)Bitcoin10,181,506 (0.83%)
According to another expert, the pressure is easing and, with interest rates potentially peaking, BTC is positioned for explosive gains.

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“Bitcoin rising on the back of softer inflation prints isn’t a fluke. It looks like the stage is being set for a Q4 breakout. The pressure is easing, the upside potential is real, and with interest rates potentially peaking, BTC is positioned for explosive gains,” said Parth Srivastava, Head of Quant at 9Point Capital’s Research Team.

At 11:59 AM IST, Bitcoin was trading at $115,150, up 0.77% over the past 24 hours and nearly 3.48% over the past week. Ethereum, meanwhile, was at $4,520, up 2.54% in the past 24 hours and 4.39% over the last seven days.

According to , the overall cryptocurrency market capitalization stood at around $4.01 trillion on Friday.

Market perspective

CoinSwitch Markets Desk

BTC briefly touched a 19-day high of $116,300, breaking out of a two-week consolidation phase, driven by cooler U.S. inflation data. The August 2025 U.S. CPI rose 2.9% annually, raising expectations of a Federal Reserve rate cut. The rally highlights renewed bullish sentiment, but the rejection above $116K shows that sellers remain active at this key resistance level.

Near-term support lies around $115K, while a sustained move above $116K could open the door to $118K–$120K. Over the past two days, Bitcoin ETFs have recorded $928 million in inflows. U.S. equities also gained on the possibility of a rate cut, with the S&P 500 rising 0.8%. The Dow Jones Industrial Average rallied 1.4%, while the Nasdaq Composite advanced 0.7%.

Also Read | Smallcap mutual funds see 23% drop in monthly inflows to Rs 4,992 crore in Aug. Is investor sentiment shifting?

Avinash Shekhar, Co-Founder & CEO, Pi42

Bitcoin’s surge to a two-week high near $114,000 ahead of the U.S. CPI data reflects growing investor anticipation around macroeconomic signals. Markets are clearly pricing in expectations of easing inflation or a more dovish Fed stance, both of which could provide tailwinds for risk assets, including crypto.

While the rally underscores Bitcoin’s role as a potential hedge in uncertain times, it’s important to remember that such moves are often accompanied by heightened volatility around key data releases. The next 24–48 hours will be crucial in determining whether this momentum can sustain or if we see a short-term pullback.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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