
Bitcoin's Price Volatility Sets the Stage Ahead of Key Inflation Data
An overview of the current state of Bitcoin's volatility and its implications on the market ahead of upcoming inflation reports.
Bitcoin’s Price Volatility Sets the Stage Ahead of Key Inflation Data
Your day-ahead look for Aug. 29, 2025
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Inflation Report
The U.S. inflation report is likely to become a catalyst for market direction. (CoinDesk archives)
Bitcoin has recently seen fluctuations leading into the release of the U.S. core PCE data, scheduled for today. This figure is expected to play a significant role in shaping future Federal Reserve actions concerning interest rates. Analysts suggest that if the data lands below expectations, market sentiment may stabilize. Conversely, unexpectedly high inflation could prompt a shift in the Fed’s guidance.
“Market liquidity pressures are mounting as reserve balances decline and significant Treasury settlements approach, leaving equities vulnerable despite lower volatility,” said Michael Kramer, the founder of Mott Capital Management.
Recent reports show that Bitcoin’s implied volatility is on the rise, indicating possible impending market turbulence, which may affect broader financial markets as well.
What to Watch
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Crypto: Upcoming livestreams and network upgrades, such as those from the Stellar Development Foundation and Conflux.
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Macro: Key economic data from the U.S. Bureau of Economic Analysis will be released today, including the core PCE Price Index estimates.
Stay alert and prepare for potential market movements as inflation data is released.