With inflation in the US coming in below expectations, there was a rapid upward movement in the prices of Bitcoin (BTC) and Ethereum (ETH).

The closely monitored Consumer Price Index (CPI) data for the US economy has been released. According to the announced data, the annual inflation rate was recorded at 2.4%, remaining below the market expectation of 2.5%. This decline in inflation has strengthened expectations that the US Federal Reserve (FED) will cut interest rates in the near term.

Immediately after the inflation data was released, the cryptocurrency markets became active. Bitcoin (BTC), which was trading at $109,002 before the announcement, quickly rose to $109,770 following the data release. A similar increase was also observed in the price of Ethereum (ETH). The price of ETH, which was $2,761 before the data, rose to $2,799 shortly after the announcement.

On the other hand, the US Dollar Index (DXY), which was at 99.03 before the announcement, fell to 98.7 after the data was released. It was observed that the demand for cryptocurrency assets like Bitcoin and Ethereum increased with the decline in the DXY.

With the Federal Reserve's interest rate decision approaching, how this data will shape market expectations is being closely monitored by investors. Experts indicate that potential interest rate cuts by the FED could have positive effects on Bitcoin and the overall cryptocurrency markets.$BTC $ETH $XRP