After reaching 9.1 percent in June, the US consumer price index (CPI) for July increased by 8.5 percent, or less than anticipated, signalling an inflation peak and possible decline.
Economists questioned by Bloomberg predicted that inflation would grow by 8.7 percent annually and by 0.2 percent compared to June.
Following the news, both bitcoin (BTC) and ethereum (ETH) prices went up. At 13:21 UTC, BTC climbed from USD 23,100 to momentarily surpass USD 24,000, boosting its daily gains to 3 percent, while ETH surged from USD 1,710 to USD 1,820, expanding its daily gains to 7 percent. Several cryptocurrencies also became green.
Inflation was anticipated to rise slower in July due to the nationwide decline in gasoline prices. Nevertheless, it remains at a 40-year high.
Mark Zandi, a chief economist of Moody’s Analytics, said before the release that “everyone is poised for pretty good news, therefore it must be good news. If it’s not as terrific as many believe, it will be awful news.”
“I believe the 9.1% inflation rate we had in June was the peak…much of this relies on the price of oil,” he continued.
In the meanwhile, Marcus Sotiriou, an analyst at the digital asset broker GlobalBlock, said in a statement that:
“CPI is anticipated to be 8.7 percent; if the actual number is lower, I expect a rise in cryptocurrencies and stocks. I believe any rate below 9.1 percent is encouraging, given this was the CPI level for last month, and it would indicate the beginning of a plateau with inflation.
Investors are monitoring the CPI for hints as to how much the Fed may hike interest rates at its meeting in September.
The difference between two-year and ten-year Treasury rates, regarded as a reliable recession predictor, has reached its most significant level in two decades.
Also Read: Luxury Watchmakers Will Continue To Accept Crypto Despite The Market Fall
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
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