Number Analysis:
1. Core Inflation (Core CPI)
Increased by 3.1% annually (higher than June 2.9% and higher than expectations 3.0%).
Month-over-month: 0.3% (equal to expectations, and higher than the previous month 0.2%).
The message: Core inflation is still sticky, and this type of inflation is the most important for the Fed as it reflects ongoing price pressures.
2. General Inflation (CPI)
Annually: 2.7% (unchanged compared to the previous month, and below expectations of 2.8%).
Monthly: 0.2% (down from June 0.3%).
The decline in gasoline and food prices helped calm the overall reading, but this will not change the Fed's stance much as they focus on core inflation.
3. The potential impact of the tariffs imposed by Trump
Investors are concerned that these tariffs will raise the cost of imported goods, which could pressure inflation in the coming months.
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💡 Impact on the cryptocurrency market:
Short-term (Days – Weeks):
Slightly higher core inflation than expected gives justification for the Fed to delay any rate cuts or even maintain high rates for a longer period.
This means that the US dollar will maintain its relative strength → temporary negative pressure on Bitcoin and other cryptocurrencies, especially against the dollar.
Medium-term (Months):
If inflation numbers remain around 3% and above, the risk of "tightening monetary policy" will persist, which could pressure liquidity in high-risk assets (like crypto).
But any subsequent indicators of slowing inflation or economic growth could suddenly reverse the trend and support the rise of cryptocurrencies.
Tariff factor:
If these tariffs truly affect the prices of imported goods and push inflation up in the coming months, this could extend the period of high interest rates, meaning longer pressure on risk markets.
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📈 Summary:
The report leans towards being short-term negative for the crypto market due to core inflation rising above expectations.
The market will monitor upcoming data (PPI, employment data, Fed statements) to confirm the trend.
Any strong drop today or tomorrow could be a buying opportunity if upcoming data shows signs of easing inflation or economic slowdown.
