Bitcoin Barely Moves as US Inflation Cools to 3.4%
The US Bureau of Labor Statistics reported that the consumer price index rose 3.4% from a year earlier in July, signaling that inflationary pressure continued to ease. Cooling prices can support risk assets such as Bitcoin by strengthening expectations for a shift toward less restrictive monetary policy and improving investor appetite. That relationship made the inflation release a closely watched test for the broader cryptocurrency market.
The July CPI reading, however, produced little market momentum because investors had largely priced in the slowdown before the data arrived. Bitcoin gained only about 0.3% on the day and traded near $63,750, while the total cryptocurrency market capitalization showed limited movement. The subdued response suggested traders saw few surprises in the 3.4% figure and found little reason to make major changes to their positions.
All Coverage
1 original reportsThe Backstory
The history behind this eventSoft US Core Inflation Lifts Crypto, With Bitcoin Holding Up Better Than Peers
The US consumer price index is a key gauge used by the Federal Reserve in setting interest-rate policy. Core CPI, which excludes volatile food and energy prices, offers a clearer view of underlying price pressures. Weaker-than-expected core inflation typically supports risk assets such as Bitcoin because rising expectations of rate cuts can improve liquidity and investor appetite.
The latest data showed that higher energy prices lifted headline US inflation, while core inflation slowed, prompting a short-term rebound in crypto markets. Bitcoin recovered to about $62,600 and held up better over the week than other tokens. Investors will next focus on the Federal Reserve’s interest-rate meeting and Chair Jerome Powell’s comments on the timing of rate cuts.
Bitcoin Rises as US Core CPI Gains Less Than Expected in March
The US Bureau of Labor Statistics' core Consumer Price Index (CPI) excludes volatile food and energy prices. It is a key gauge used by the Federal Reserve to assess inflation trends and interest-rate policy. Cooling inflation data typically benefits risk assets and can also affect cryptocurrencies such as Bitcoin.
US core CPI rose 0.2% month on month in March, below market expectations of 0.3%. Bitcoin climbed to about $72,400 after the data was released and briefly touched $73,000 intraday. However, markets still see little likelihood of a Federal Reserve rate cut in April.
Subscribe to Mark Radar Weekly
Every Friday, the week's strongest signals in your inbox. Unsubscribe anytime.