Bitcoin Rallies Despite Hot CPI | Blockstream Rejects Liquid Ransom | Metaplanet Cuts Executive Pool | Daily Crypto Roundup.

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Welcome back to the Daily Crypto Roundup. Bitcoin fell to almost $76,400, then turned sharply higher even as United States inflation made an interest rate increase next week more likely. Ethereum gained nearly 7%, so this is not a simple risk-off story. Blockstream has also refused to pay for the last 598.5 Bitcoin missing from Liquid. Metaplanet has cut a controversial executive reward pool, and Anchorage Digital is bringing a yield-bearing stablecoin into institutional custody. At the time of recording, Bitcoin is around $78,765, up approximately 1.9% over 24 hours after trading between about $76,414 and $79,550.

Ethereum is near $2,607 and leads the major assets with a gain of roughly 6.8%.

XRP is close to $1.39 and up about 2.2%.

BNB is around $732.

Solana is near $103.25 and Hyperliquid is close to $82.80. Cardano is around $0.21, while Chainlink is near $11.92.

The standout is Ethereum, but today's central question is why the whole market recovered when the inflation report made tighter policy, not easier policy, the immediate risk. Tell us whether you trust a Bitcoin rally that arrives beside near certain rate hike expectations. And follow Crypto News Today for the evidence behind the move. New Kraken users who sign up using our link in the description can claim 20xRP from Crypto News Today. Availability and eligibility vary by region. The 20xRP is supplied by Crypto News Today, not Kraken. This is not financial advice. Crypto trading involves risk of loss. The lead story began with the United States Bureau of Labor Statistics. Consumer prices increased 0.4% in August, after rising only 0.1% in July.

The annual rate stayed at 3.4%.

Excluding food and energy, core inflation rose 0.3% for the month, slightly above the 0.2% economists expected. The annual core rate eased from 2.5% to 2.4%, its lowest reading since February 2021

That mix explains the disagreement. The monthly numbers were uncomfortable, but the annual core trend improved. Gasoline rose 3.9% and accounted for more than 1 third of the headline increase. Energy overall gained 2.1%.

Shelter rose 0.3%.

Airline fares increased 2.7%. And hotel prices gained 2.4%.

Medical care and motor vehicle insurance declined. Bitcoin's first reaction was negative. It fell to approximately $76,400 as the two-year Treasury yield moved higher, and the market-implied probability of a quarter-point Federal Reserve increase next week climbed above 90%.

Bitcoin then reversed, approaching $79,550 before easing. Ethereum's nearly 7% gain was much stronger, while United States stock indexes also advanced and bond yields later came off their highs. No single verified catalyst explains the reversal. Part of the answer may be that traders had already prepared a hot report after yesterday's producer price data. Part may be relief that annual core inflation still fell. Short covering can also lift prices when a bearish event fails to produce sustained selling. Those are interpretations, not facts established by the data. Ellen Zentner, chief economist at Morgan Stanley Wealth Management, said the report left the Fed with less room to maneuver, while it protects its inflation-fighting credibility. Economist Daniel Lacalle took the other side, warning, Do not confuse an energy price shock with demand overheating. That disagreement is the decision now facing policy makers. Respond to expensive fuel and monthly pressure. Or avoid tightening into an economy whose underlying inflation trend has improved. What changed today is the consumer price evidence, the near certainty priced into next week's meeting and Bitcoin's recovery from a new intraday low. What did not change is the Federal funds rate. The Federal Open Market Committee still has to vote, and a market probability is not a decision. Bitcoin and other risk assets benefit if investors conclude the bad news was already reflected in prices. Ethereum holders benefit most from today's relative move. Late short sellers lose if they expected a straight line fall after the release. The danger for new buyers is that they treat one reversal as proof that interest rates no longer matter. Higher yields still increase the return available from cash and government bonds, and expensive energy can keep household inflation expectations elevated. Would you buy Bitcoin because it absorbed a hotter monthly core reading? Or wait until it can close above $80,000 with bond yields falling? The immediate price tests are today's $79,550 high and $80,000.

Below the market, $78,000 and the roughly $76,400 low matter. The larger test is the Federal Reserve meeting on September 15th and 16th. If policymakers raise rates and Bitcoin still holds today's recovery, the resilience argument becomes stronger.

If the market loses $76,400, today's rally looks more like a temporary squeeze. The second story is a material update to Sunday's Liquid Network breach. The attackers have returned approximately $3,400 of the $4,000 Bitcoin taken from the Federation, but $598.5 Bitcoin remains at the withdrawal address. At today's price, that is worth about $47 million.