Bitcoin $119,916 price could continue to rally after the release of the July US Consumer Price Index (CPI), which shows inflation holding at 2.7% year-over-year, unchanged from June and below the 2.8% forecast. Core CPI, excluding food and energy, rose 3.1% annually, in line with expectations. On a monthly basis, overall CPI increased 0.2%, easing from 0.3% in June, while core CPI rose 0.3% versus a 0.2% gain previously.
The data reinforces a mildly bullish backdrop for Bitcoin, as cooling inflation strengthens the case for monetary easing, a positive factor for risk-on assets. A lower interest rate environment reduces the opportunity cost of holding Bitcoin, potentially drawing fresh capital into the market.
