The US Bureau of Labor Statistics just published the Consumer Price Index data for July, which has essentially matched most expectations, with the regular CPI coming in at 3.3% to 3.4%.
The substantial increase in the CORE CPI of 2.5% was official, given the decline in June due to the decreasing energy costs at the time, which were considered misleading given the brief de-escalation in the Middle East war.
Reports ahead of the CPI release claimed that a modest increase would continue to reduce the chances for a Federal Reserve rate hike in September.
This narrative received further validation at the end of the previous business week when the US jobs report showed a substantial decline in non-farm payrolls, starkly contrasting with market expectations.
Although reality matched expectations for the July data, bitcoin’s price reacted with a small price decline. The asset had recovered from yesterday’s low at 63,200 and jumped to $64,400 minutes before the data was released.
However, it was stopped there, and its initial reaction has been quite modest, as it has dipped by a few hundred dollars. Nevertheless, analysts remain adamant that the CPI data is key to understanding the cryptocurrency’s next big move.
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