Bitcoin Fumbles Briefly Post U.S CPI Inflation at 3.2% for July

• Bitcoin is down 1% in the last day and is now trading at $29,390.
• CPI inflation was forecasted to be 3.4% by JP Morgan.

Inflation as measured by the annual Consumer Price Index in July came in at 3.2%, below market estimates of 3.3%, as reported by the U.S. Bureau of Labor Statistics. Inflation measured by the Core Consumer Price Index came in at 4.7%, below the market’s estimate of 4.8%, with the monthly rate holding steady at 0.2%.

The US Federal Reserve has time to stay hawkish in light of annual inflation data that is hotter than last month’s 3%. A shift in the stock and cryptocurrency markets is still a few months away. CPI inflation was forecasted to be 3.4% by JP Morgan. While other major Wall Street behemoths predicted a 3.2% increase.

It’s possible that the stock and cryptocurrency markets would have gone much higher if headline inflation dropped below 3%. In fact, the CME FedWatchTool presently indicates a greater than 90% chance that the Fed will maintain the Federal target rate at the forthcoming September 2023 FOMC meeting. The DXY declined 0.63 percent to 101.78 and is expected to continue its downward trend.

Under Pressure

Speculators anticipate that Bitcoin and Ethereum will rise over $30k and $2000, respectively, to signal a bullish market. Despite this, the value of cryptocurrencies remains under duress.

Bitcoin is down 0.50% in the last day and is now trading at $29,390 as per data from CMC. As inflation has been lower than anticipated, a little increase is anticipated. The price of Bitcoin is trying to break the $30k barrier but has failed on multiple occasions.

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