Bitcoin swings wildly as volatility in Fed expectations increases ahead of US CPI and FOMC decision

AI summary

<p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">FUNDAMENTAL OVERVIEW</p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;"> </p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">Bitcoin had a volatile end to last week. On Thursday, the price spiked to the upside after some dovish <a href="https://investinglive.com/central-banks/feds-waller-finally-seeing-some-signs-of-disinflation-in-recent-data/" rel="follow" style="color: rgba(70, 120, 134, 1); text-decoration: underline;">Fed’s Waller comments</a>. Since he deviated from his usual hawkish stance, it triggered a dovish repricing in interest rate expectations which lowered the probabilities for a September rate hike.</p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">On Friday, bitcoin erased most of its Waller-driven gains as the <a href="https://investinglive.com/news/us-august-non-farm-payrolls-vs-56k-expected/" rel="follow" style="color: rgba(70, 120, 134, 1); text-decoration: underline;">US NFP report</a> showed job growth in August almost tripling the consensus estimate of 56K. This triggered a hawkish repricing which saw the probabilities for a rate hike in September returning to pre-W