August U.S. CPI Inflation Report Aligns with Expectations, Bitcoin Surges
- The U.S. Consumer Price Index (CPI) rose by 3.4% year-over-year in August, meeting expectations.
- Month-over-month, the CPI increased by 0.4%, also in line with forecasts.
- Core CPI registered at 2.4% YoY, its lowest since 2021, while MoM it rose by 0.3%.
- Bitcoin rebounded above the psychological level of $78,000, recovering from below $77,000.
- Ethereum is trading above $2,500, and Solana has reclaimed the $100 mark.
- The odds of a Federal Reserve rate hike next week have surged to over 80%.
The inflation report indicates persistent inflation pressures despite a low core CPI figure, which may influence monetary policy decisions significantly.
The potential Fed rate hike would be the first since July and comes amid rising geopolitical tensions affecting global oil supplies.
Following the CPI release, Bitcoin’s price recovery to above $78,000 reflects market reactions to inflation data as traders anticipate potential interest rate changes.(Source)
