Bitcoin has surged past the $114,000 mark for the first time in three weeks amid new inflation data and renewed pressure from President Trump.
For context, the rally followed the release of U.S. Producer Price Index (PPI) figures for August, which showed inflation easing more than expected. At the time of writing, Bitcoin was consolidating around $114,200 after climbing from an intraday low of $110,700.
The softer inflation data has strengthened expectations of aggressive monetary easing, fueling fresh optimism across risk assets, including crypto.
US PPI Cools Sharply in August
Today, the Bureau of Labor Statistics reported that the U.S. PPI rose 2.6% year-over-year (YoY), significantly below expectations of 3.3% and the prior month’s reading of 3.3%. On a monthly basis, PPI declined by 0.1%, compared to forecasts of a 0.3% increase.
Core PPI, which excludes food and energy, also showed weakness, rising 2.8% YoY versus an expected 3.5%, and down from 3.7% in the previous month. On a monthly basis, core PPI rose by 0.3%, marking the fourth consecutive increase. This data confirms the view that inflationary pressures in the U.S. are easing faster than anticipated.
U.S. August PPI (YoY) came in at 2.6%,below expectations of 3.3%.
PPI (MoM) came in at -0.1%, also below expectations of 0.3%. pic.twitter.com/WJaApBMwjy— TheCryptoBasic (@thecryptobasic) September 10, 2025
Fed Rate Cut Bets Grow
Traders have quickly adjusted their expectations for Federal Reserve policy. Specifically, CME FedWatch data shows a rising probability of a 50 basis points (bps) cut at the Fed’s September meeting.
Meanwhile, Kalshi markets indicate bets are shifting toward three rate cuts this year rather than two. Currently, there is a 44% chance of three cuts versus a 39% chance of two.
The soft inflation data comes on the heels of weakening labor market figures, further pressuring the Fed to act. Attention now turns to tomorrow’s Consumer Price Index (CPI) release, the final major economic indicator before the Fed’s decision next week.
Trump Weighs In
Adding to the market noise, U.S. President Donald Trump took to Truth Social, declaring that there is “no inflation” and urging Fed Chair Jerome Powell to lower rates aggressively. Trump described Powell as a “total disaster” and demanded that rates be cut “big, right now.”
What will the rate cut be?
25 bps
50 bps
100 bps pic.twitter.com/8yEcl1Sa5V— Discover Crypto (@DiscoverCrypto_) September 10, 2025
Outlook for Bitcoin
With the combination of softer inflation data, growing rate cut bets, and political pressure on the Fed, Bitcoin is gaining momentum as traders seek assets likely to benefit from a looser monetary policy environment.
Under the right conditions, industry commentators expect Bitcoin to break past $150,000 and end the year at $200,000.