Bitcoin swings after the US inflation report

Bitcoin swung sharply on Friday after the August US inflation report, initially falling towards $76,700 before recovering. CoinDesk's session coverage later recorded a rebound to just below $80,000, followed by the loss of some early gains.

Headline consumer prices rose 0.4 percent over the month and 3.4 percent over the year. Core inflation increased 0.3 percent monthly, above the 0.2 percent forecast, while its annual rate slowed to 2.4 percent from 2.5 percent.

The mixed readings strengthened expectations for a Federal Reserve rate increase even as risk assets recovered during part of the session. Bond yields remained central to the repricing, with the two-year Treasury yield jumping after the release.

The rapid reversal shows why the first price response is an incomplete account of a data day. A disappointing monthly number and a slower annual trend gave traders different signals to weigh.