Bitcoin Soars To $24,000 As CPI Report Shows U.S. Inflation Slowed To 8.5% In July

The crypto market has reacted positively after recording slower-than-expected inflation, Bitcoin seems to be sharper than ever as the $24,000 level is once again challenged.

Inflation in the United States has slowed since July, potentially bolstering a commonly held belief that the worst of increasing consumer prices is behind the economy.

Bitcoin (BTC) rallied 2% and Ethereum (ETH) 7% in the minutes following the report, signaling relief from crypto traders that the Federal Reserve could ease its aggressive approach to tighten monetary conditions.

According to the Bureau of Labor Statistics, the consumer price index (CPI) increased 8.5% year on year in July, albeit it remained steady from the previous month, owing in part to decreased energy costs.

Most cryptocurrencies across the board declined on Tuesday in anticipation of the report, with Bitcoin dropping to $23,100 after rising above $24,000 on Monday. Ethereum drops to $1,670.

In addition, the speech of US President Joe Biden highlighted the economic recovery that can start here, a positive signal for both the US stock market and crypto.

According to the CME FedWatch Tool, traders now expect the Fed to raise interest rates by 50 basis points in September, up from 32% only one day ago. Several central bankers have indicated that they will continue to tighten policy unless inflation falls considerably.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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