Bitcoin News Today: Rate-Cut Hopes Ignite Global Markets Amid Sticking Inflation Pains

Asia’s equities markets rallied in early trading on Monday, buoyed by growing expectations of aggressive U.S. interest rate cuts in response to inflation and labor data. According to the CMC FedWatch tool, traders priced in a 92% probability of a 50-basis-point rate reduction at the Federal Reserve’s September meeting [1]. This optimism has spilled over into global markets, with U.S. stock futures rising ahead of the inflation report due this week. The Dow Jones Industrial Average Futures gained 0.10%, while the S&P 500 and Nasdaq 100 futures added 0.17% and 0.35%, respectively [1].

The upcoming inflation data is expected to show year-over-year Consumer Price Index (CPI) inflation at 2.9% in August, up from 2.7% in July, with core CPI projected at 3.1% [5]. This would mark the highest inflation rate since January and is likely to heighten pressure on the Fed to act. Bank of America analysts forecasted that headline CPI would reach 2.9%, emphasizing that tariffs continue to drive inflation in goods categories such as apparel, household furnishings, and recreation [5]. Meanwhile, the Fed remains cautious about cutting rates too aggressively, with officials wary of the risk of reigniting inflation as the impact of tariffs lingers.

The jobs market, meanwhile, has shown signs of softening. The U.S. unemployment rate climbed to 4.3% in August 2025, up from 3.4% in 2023 [5]. Layoffs increased by 66% year-over-year, and the number of open jobs fell from over 12 million in 2022 to 7.2 million in July. These trends have intensified calls for monetary easing to stimulate hiring and prevent a broader economic slowdown.

Cryptocurrencies also experienced mixed activity ahead of the inflation report. Bitcoin edged higher by 0.26%, trading at $110,807.77, but remained confined within a tight range between $110,500 and $111,500 [1]. Analysts noted that Bitcoin's failure to break above the $112,000 level could trigger further volatility, with some predicting a potential 50% rally above $150,000 if the market breaks out [1]. Ethereum, which hit an all-time high of $4,957 in August, saw a slight pullback, with the asset trading at $4,288.17 [1]. Despite the price dip, Ethereum’s total revenue for August fell by 44% to $14.1 million, raising questions about the network’s long-term financial sustainability [3].

Market observers remain divided on the implications of the data. While some argue that the Fed’s anticipated rate cuts will provide a floor for equity markets and potentially drive risk-on sentiment, others warn that inflation remains stubborn, particularly in goods categories where tariffs are still exerting upward pressure. The outcome of the Fed’s September meeting will be pivotal in shaping the near-term trajectory of both traditional and digital asset markets.

Source:

[1] title1 (https://www.benzinga.com/crypto/cryptocurrency/25/09/47539828/bitcoin-dogecoin-solana-gain-ethereum-steady-analyst-says-btcs-breakout-past-this-level-could-be-a-massive-trigger)

[2] title2 (https://cryptoslate.com/if-selling-2-billion-crashes-the-btc-price-why-doesnt-buying-83b-send-it-to-space/)

[3] title3 (https://cointelegraph.com/news/ethereum-revenue-drops-44-percent-august-all-time-high)

[4] title4 (https://www.investopedia.com/what-to-expect-from-thursday-s-inflation-report-11805415)

[5] title5 (https://www.thestreet.com/economy/major-wall-street-firm-reveals-inflation-forecast-ahead-of-cpi-this-week)