Key Takeaways

• Bitcoin climbed back above $80,000 after Fed Governor Christopher Waller said cooling inflation could justify leaving interest rates unchanged in September.

• Three-month core inflation has fallen from 4.76% in February to 3.05% through July, according to Waller, although annual PCE inflation remains well above the Fed’s 2% target.

• Markets are almost evenly divided over a Sept. 16 rate hike, making the upcoming August CPI report a major test for Bitcoin.

Bitcoin has returned above $80,000 as a sharp improvement in short-term US inflation data gives crypto traders a new reason to question whether the Federal Reserve will raise rates on Sept. 16.

BTC briefly reached…