The US Consumer Price Index for July came in as expected, with 0.2% monthly inflation and a 3.4% annual rate. Core CPI, which excludes food and energy, rose between 0.1% and 0.2% on the month, bringing the annual rate to approximately 2.5%. These figures confirm the disinflationary trend started in June, providing the bullish follow-through markets were hoping for. Bitcoin and major cryptocurrencies immediately gained after the data was released by the Bureau of Labor Statistics on August 12 at 8:30 a.m. ET. Markets are now pricing in interest rate cuts or at minimum a prolonged pause, creating a favorable environment for risk assets such as cryptocurrencies.
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