Bitcoin Breaks $114K, Crypto Market Cap Climbs Ahead Of US Inflation Data

Bitcoin rose past $114,000 on Thursday, lifting the overall crypto market cap by 2% as traders positioned themselves ahead of a key US inflation ￰1￱ Bureau of Labor Statistics is set to release August Consumer Price Index data on Sept. 11 at 8.30am Eastern ￰2￱ numbers carry outsized importance for digital assets, with investors eyeing whether the Federal Reserve will cut rates at its Sept. 16-17 ￰3￱ polled by FactSet expect consumer prices to rise 0.3% month over month and 2.9% year over year in ￰4￱ inflation, which strips out food and energy, is seen at 3.1% on an annual ￰5￱ Spot ETFs Post $757M In Net Inflows A softer-than-expected reading would add pressure on the Fed to cut rates by as much as half a percentage ￰6￱ a move would weaken the dollar, pull money out of bonds and funnel capital into risk assets like cryptocurrencies and ￰7￱ markets reacted ￰8￱ rose 2% to $4,401, while altcoins including Solana, BNB and Hype outperformed, with BNB and Hype touching record ￰9￱ exchange-traded funds also saw strong ￰10￱ Sept. 10, Bitcoin spot ETFs recorded net inflows of $757m, marking the third straight day of positive ￰11￱ ETFs pulled in $172m, with BlackRock’s ETHA drawing $74.5m ￰12￱ September 10, Bitcoin spot ETFs recorded total net inflows of $757 million, marking the third consecutive day of net ￰13￱ spot ETFs saw total net inflows of $172 million yesterday, with BlackRock’s ETHA leading at $74.5 million. ￰0￱ ￰14￱ — Wu Blockchain (@WuBlockchain) September 11, 2025 Rate Cut Hopes Rise Even As Officials Flag Caution Market participants say momentum has been building since July’s inflation report, which suggested easing price pressures.

A rate cut would extend that trend, though Fed officials remain ￰15￱ from the last policy meeting noted concerns over slowing job growth and tariff-driven inflation, while also warning that asset prices were already ￰16￱ Reserve chair Jerome Powell, who has resisted repeated calls from President Donald Trump for deeper cuts, acknowledged at Jackson Hole that conditions “might justify” ￰17￱ now see the upcoming CPI print as the final data point before next week’s policy ￰18￱ Prices Drop, Raising Hopes Of Cooling Inflation Producer price data released earlier showed a surprise drop in August, driven by lower service ￰19￱ further boosted expectations that inflation is ￰20￱ outcome will matter beyond ￰21￱ and other Layer-1 networks have been sensitive to shifts in US monetary policy, while altcoins often see sharper moves during periods of liquidity rotation.

A dovish Fed would likely extend the rally across the ￰22￱ the same time, a stronger-than-expected CPI print could delay or reduce the scope of cuts, tempering the recent crypto ￰23￱ now, the crypto market is trading as if relief is coming, with investors betting that a Fed pivot could sustain record-breaking valuations in the months ahead.