CoinShares Sees an Unusual Mix: Hotter Core CPI Could Hurt Bitcoin Near-Term, Buyback Failure May Help Later

The useful part

Bearish Inflation Print, Bullish Buyback Failure NEWS Bitcoin's 'Unusual Mix': Bearish Inflation Print, Bullish Buyback Failure A new CoinShares report said bitcoin's price could be hurt in the short-term but benefit in the long-term. In a Friday note, European asset manager CoinShares' Head of Research, James Butterfill, said firmer-than-expected core inflation raises the odds of tighter Fed policy and could cap bitcoin below $80,000 for now.

How it works

• "Today's CPI data is negative at the margin, increasing the probability of tighter monetary policy and potentially limiting the immediate upside.
• According to CME's FedWatch tool, traders think there is a 85% chance interest rates will be higher after the Federal Reserve meets next week.
• Treasury's bond buyback programme failing to bring down long-end yields — a failure that could ultimately feed the debasement narrative that has supported both bitcoin and gold.
• "The result is therefore a somewhat unusual policy mix for Bitcoin," the report read.
• Treasury's expanded bond buyback programme has so far failed to materially suppress long-term yields.

What to take from it

The longer-term case, he argued, rests on the U.S. If yields stay stubbornly high, Butterfill said, pressure will build on Treasury Secretary Scott Bessent to escalate to a much larger, "bazooka-style" buying programme aimed at forcing borrowing costs down. Bitcoin in August had one of its best runs in years after Treasury Secretary Scott Bessent announced the department would double the size of its long-dated bond buybacks.

Example or evidence

• ABOUT US Bitcoin Magazine is published by BTC Inc., a subsidiary of Nakamoto Inc.
• The so-called debasement trade is when investors buy an asset as a way to hedge against a currency losing value.
• Bitcoin and gold have both benefited as part of the trade as the dollar weakens.

Details worth keeping

By Mathew Di Salvo September 11, 2026 Bitcoin's 'Unusual Mix': Bearish Inflation Print, Bullish Buyback Failure Share Facebook X Linkedin ReddIt Email Telegram Copy URL Prefer us on Google Download App Download App Bitcoin's path higher just got harder in the short term, but the setup further out may be improving, according to a new report. Bitcoin has typically performed well in a low interest rate environment.

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