The latest U.S. Consumer Price Index (CPI) data for July has just been released, showing 2.7% inflation — slightly lower than the 2.8% expected by analysts. This small difference is big news for the crypto market, especially Bitcoin$BTC
Why? Lower CPI means inflation isn’t rising as quickly, which makes it more likely that the U.S. Federal Reserve will pause interest rate hikes or even cut rates in the future. Lower interest rates often encourage investors to buy riskier assets like Bitcoin, Ethereum, and other cryptocurrencies.
Before this data came out, Bitcoin traders were on edge. Some were preparing for bad news by buying “put options” between $115,000–$118,000 to protect themselves in case prices fell. At the moment, Bitcoin is holding around $118,525, and market mood has improved since the CPI release.$BTC
For now, this is a bullish sign for crypto. If inflation keeps easing, Bitcoin and altcoins could see a stronger rally in the months ahead. But traders will be watching the next economic reports closely before making big moves.$BTC