Key takeaway now
Bitcoin price near $114K amid 2.9% US inflation held close to that level after the August CPI print showed 2.9% year‑over‑year. Investors reacted quickly as markets reassessed Federal Reserve timing for rate cuts. ETF inflows continued to support the move, while PPI data provided mixed signals for risk appetite.
CPI 2.9% and Fed
The CPI 2.9% read keeps the Federal Reserve cautious about rapid easing. With US inflation proving stickier than some expected, the Fed’s path for September looks measured rather than aggressive. Global policymakers, including the ECB, are watching US inflation and reacting in ways that shape cross‑border capital flows into crypto.
ETF inflows influence
ETF inflows remain a direct driver behind the bitcoin price near $114K amid 2.9% US inflation narrative. Spot ETF purchases dampen volatility and attract institutional demand. Traders note that steady inflows can offset short‑term macro shocks, preserving market sentiment even when inflation surprises.
Market sentiment shift
Market sentiment is the balance between macro data like CPI 2.9% and on‑chain or custody flows. When expectations for rate cuts slip, risk assets—including Bitcoin—can trade sideways. Still, the combination of ETF inflows and constructive liquidity helped Bitcoin absorb the news near $114K.
PPI data context
PPI data and other economic indicators add color to inflation headlines. While CPI shows consumer prices, PPI offers a producer‑level view that can foreshadow CPI trends. Analysts expect transitory volatility, then gradual easing if inflation cools over coming months.
Bitcoin trading steps
For traders, focus on order flow, ETF inflows, and Fed commentary. Use stop management and size positions around key levels near $114K. Remember that inflation headlines and ECB signals can change market sentiment fast.
Frequently asked questions about Bitcoin price near $114K amid 2.9% US inflation (FAQ)
Why did Bitcoin react to CPI 2.9%?
CPI 2.9% changes expectations for Federal Reserve rate cuts, which alters risk‑asset demand and impacts Bitcoin flows.
Do ETF inflows really support price?
Yes. Spot ETF inflows add buy pressure and institutional participation, helping sustain prices near key levels.
How should traders manage risk now?
Watch Fed guidance, PPI data, and ETF flows. Use position sizing and stop losses around major support and resistance.
Sources to this article
Defidonkey (2025) ‘Bitcoin ETF inflows push price above $114,000’. Available at: https://defidonkey.com/en/bitcoin-news/bitcoin-etf-inflows-above-114k/ (Accessed: 11 September 2025).
Defidonkey (2025) ‘Bitcoin price boost after PPI decline raises Fed cut hopes’. Available at: https://defidonkey.com/en/bitcoin-news/bitcoin-price-boost-after-ppi-decline-fed-cut-hopes/ (Accessed: 11 September 2025).
Defidonkey (2025) ‘Ethereum futures and Bitcoin ETF flows show widening market split’. Available at: https://defidonkey.com/en/market-analysis/ethereum-futures-bitcoin-etf-flows-market-split/ (Accessed: 11 September 2025).
