#CPIWatch

All eyes are on the latest U.S. Consumer Price Index (CPI) data, a key gauge of inflation that can ripple through global markets—including crypto. With inflation cooling slightly for the third consecutive month, the annual rate now sits at 2.8%, down from last month’s 3.0%. Core CPI, excluding food and energy, eased to 3.1%, signaling potential breathing room for the Federal Reserve.

For traditional markets, this softer print increases the probability of a rate cut later this year, lowering borrowing costs and improving liquidity. In crypto, such a macro shift often translates into renewed bullish sentiment as risk assets benefit from easier monetary policy.

Bitcoin and Ethereum have already reacted with mild upside, while altcoins in DeFi and AI sectors are showing sharper gains. Traders will now watch for confirmation from Fed statements in the coming weeks, as the CPI trend becomes a major driver for Q3 positioning.

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