US Inflation Rises To 3.2% In July, Bitcoin Steady At $29,600

August 10, 2023 - Around 2 mins mins to read

Key Points:

July sees a slight 0.2% rise in US inflation, supporting stable interest rate expectations for the Federal Reserve’s September meeting.
Despite a 3.2% CPI increase in July, cryptocurrency prices remain unaffected.
Bitcoin stays steady at $29,600 as the Federal Reserve’s battle against inflation continues, considering July’s CPI report for their September meeting.

The Bureau of Labor Statistics’ latest report has revealed a slight 0.2% increase in US inflation for July, bolstering expectations for the Federal Reserve to maintain stable interest rates during the upcoming September meeting.

US Inflation Rises To 3.2% In July, Bitcoin Steady At $29,600

Despite a notable inflation resurgence indicated by the Consumer Price Index (CPI), cryptocurrency prices remained steady on Thursday.

The CPI demonstrated a 3.2% year-on-year rise in July, slightly below economists’ predictions. This followed June‘s 3% annual inflation deceleration.

Consumer prices experienced a parallel 0.2% monthly upswing in both July and the preceding month. The primary driver behind the index’s monthly uptick was housing prices, which saw a 0.4% increase, accounting for 90% of the overall CPI growth.

In contrast, the release of the CPI report had minimal impact on Bitcoin, which maintained its stability at approximately $29,600.

This could be indicative of a heightened appetite for risk-taking among traders and investors, potentially favoring assets like Bitcoin and reinforcing the prevailing dovish sentiment within the market.

In response to surging inflation in early 2022, the US Federal Reserve embarked on an unprecedented spree of monetary tightening, raising its benchmark fed funds rate target by over 500 basis points within the last 17 months.

The Fed’s most recent rate hike occurred during the June policy meeting. As the battle against inflation continues, July’s CPI report will be among several factors deliberated by the Federal Reserve in its upcoming Federal Open Markets Committee meeting scheduled for September.

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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