In July 2025, US consumer price data had a significant impact on the cryptocurrency market, leading to changes in both Bitcoin and altcoin prices.
US Inflation Data
On July 15, the US Bureau of Labor Statistics released the Consumer Price Index (CPI) data for June, indicating both headline and core inflation increases. The annual headline inflation rate rose to 2.7%, while core inflation, excluding food and energy, reached 2.9%. These figures were below market expectations, leading to a minor recovery in Bitcoin prices.
Reaction of Bitcoin and Altcoins
Before the data release, Bitcoin peaked at around $123,000 but began to decline afterward. Consequently, Bitcoin, trading at around $116,400 at the time of the report, demonstrated a recovery of over 5% from the previous week. Altcoins such as Ethereum and XRP also showed declines, with Ethereum trading at $2,970.
Future Prospects
High inflation could dampen investor appetite for riskier assets in the cryptocurrency markets. However, ongoing investments in Bitcoin and Ethereum ETFs, along with the potential launch of new altcoin ETFs, may inject fresh capital into the markets in the medium term.
Thus, US inflation data has a profound impact on the cryptocurrency market, and the ongoing developments will depend on the Federal Reserve's decisions and investor reactions to new economic conditions.
