The August U.S. CPI was in line with expectations, and traders reduced their bets on the Federal Reserve to cut interest rates by 50 basis points next week. According to the CME's FedWatch tool, the probability of a rate cut fell to 13% from 44% last week.

U.S. stocks rebounded strongly after falling in early trading, with the S&P 500 up 1.07%, the Dow up 0.31%, and the Nasdaq up 2.17%.

After the CPI was released, Bitcoin fell to $55,535 at one point, and then rebounded to above $57,000. As of press time, Bitcoin was at $57,342, up 0.54%.

In the altcoin market, 85% of tokens fell, with the best performers being Injective (INJ), up 3%, and RocketPool (RPL), down 9.5%.

The current total value of the crypto market is $2.02 trillion, of which Bitcoin accounts for 56.3%.

Bitcoin diverged from gold, with the latter breaking through a new high of $2,500, while Bitcoin fell more than 22% from its March high. Analysts believe that Bitcoin is still in a bear market and may face the risk of further correction in the future, but some analysts are optimistic about its potential rebound after October.