The U.S. Consumer Price Index (CPI) for July 2023 recorded a 2.7% increase year-over-year, leading to a rise in cryptocurrency prices, including Bitcoin and Ethereum.
U.S. Consumer Price Index Data
According to the U.S. Bureau of Labor Statistics, July's consumer price index increased by 2.7% year-over-year and 0.2% month-over-month. These results were in line with expectations and supported hopes for stability in inflation indicators.
Crypto Market Responds to CPI
The cryptocurrency market showed a sharp rise immediately following the CPI data release, reflected in the price increases of Bitcoin and Ethereum. Analysts note that such crypto assets often react positively to expected inflation data, reducing the likelihood of hawkish measures by the Federal Reserve.
Future Market Changes
The dissipation of fears regarding aggressive monetary policy by the Fed is expected to provide support for the cryptocurrency market. This could set the tone for future changes in fiscal policy and the performance of crypto assets.
The overall state of the U.S. Consumer Price Index for July indicates economic stability, which in turn supports the cryptocurrency market and creates favorable conditions for risk.
