Key facts
- US CPI inflation rose 0.1% month-over-month and 3.4% year-over-year in July.
- Core CPI inflation rose 0.2% month-over-month and 2.5% year-over-year.
- Bitcoin traded near $63,750 following the inflation data.
- Markets had largely priced in the expected inflation figures.
U.S. consumer prices rose 0.1% in July, bringing the year-over-year inflation rate to 3.4%, matching economists' expectations. The Bureau of Labor Statistics reported that the index for shelter accounted for roughly two-thirds of the monthly increase, while energy prices fell 1.5%. Core CPI, excluding food and energy, increased 0.2% month-over-month and 2.5% year-over-year, also in line with forecasts. Bitcoin saw a modest gain, trading around $63,750, with a daily range of 1.5%. The total crypto market capitalization dipped slightly to $2.17 trillion. Markets appeared to have already priced in the cooling inflation data, with the relief trade evident in strong Bitcoin ETF inflows last week. Despite the tame print, inflation remains above the Federal Reserve's 2% target, and the market is not pricing in a September rate cut. Bitcoin's price has been range-bound between $62,000 and $67,000, with bearish technical signals such as its 50-day average below its 200-day average.