The U.S. Consumer Price Index (CPI) in July saw an annual increase of 8.5 percent, or less than expected, after peaking at 9.1 percent in June, indicating a peak in inflation and a possible slowdown.
Economists polled by Bloomberg estimated that inflation would rise 8.7 percent year-on-year in July this year and 0.2 percent higher than in June.
Both Bitcoin (BTC) and Ethereum (ETH) jumped immediately after the announcement. Bitcoin rallied from $23,100 and briefly touched above $24,000, extending its daily gain to 3%, while Ethereum rallied from $1,710 to $1,820, extending its daily gain to 7%. Several altcoins also turned green.
Inflation was expected to moderate in July as gasoline prices fell across the country. However, it is still near 40-year highs.
Prior to the announcement, Moody’s Analytics Chief Economist Mark Zandi stated that:
“I think the 9.1% inflation rate we experienced in June will be a peak, much of it depends on oil prices.”
Investors are looking for clues as to how much the Federal Reserve might raise interest rates at its September meeting.
– Vitalik Butrin: Ethereum’s proof-of-work fork does not significantly harm Ethereum
– Hayes apologizes for calling Ethereum a shitcoin
– MicroStrategy’s Michael Silver says stepping down as CEO will allow him to focus more on Bitcoin
– As millions of dollars are stolen, the price of SOL will decrease
– Dogecoin moves towards zero
– Analysts: BNB will grow moderately this year, may triple by 2025