Grayscale Head of Research Zach Pandl says the latest U.S. inflation data could create a temporary setback for cryptocurrency markets due to the growing likelihood of the Federal Reserve opting for another rate hike. August Consumer Price Index data revealed that headline CPI rose 0.4% month over month with an annual rate of 3.4%, hotter than expected. However, core inflation eased to 2.4% annually, its lowest level since 2021. Despite the rate hike fears, Pandl does not expect a severe cryptocurrency correction and believes any weakness would likely be limited, offering investors who missed the sharp August advance another opportunity to build positions. Bitcoin was trading at $78,772 according to CoinGecko data.
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