US inflation data meets expectations, impacting Bitcoin and Fed rate bets

Bitcoin price US inflation Federal Reserve CPI report cryptocurrency market

US inflation data for July, showing a 0.1% monthly increase and 3.4% annual rise, has met market expectations. This benign reading has influenced financial markets by reducing expectations for immediate Federal Reserve interest rate hikes. According to CME Group’s FedWatch Tool, the probability of a rate hike in September has shifted, with some indicators placing the odds at 40% while others suggest a 60% chance of rates being held steady.

Bitcoin has reacted to the economic data with volatility, trading around the $63,000 to $64,000 range. The cryptocurrency faced downward pressure following the report, with analysts noting that the lack of a surprise in the CPI print provided little momentum for a significant rally. Additionally, market participants are monitoring technical support levels near $63,000 and potential downside toward $60,000.

In broader markets, the US dollar has remained relatively stable against major peers like the Japanese yen following the inflation release. Meanwhile, the SEC is reportedly exploring an innovation exemption that could allow for the limited trading of tokenized securities on blockchain-based platforms, potentially enabling 24/7 market access for certain assets.

Entities

Bitcoin · Bitcoin · Bureau of Labor Statistics · CME Group · Federal Reserve · Grayscale · Metaplanet · SEC · U.S. Securities and Exchange Commission · United States

Claims

What the coverage asserts, and how well corroborated each claim is across sources.

[○ 1 SOURCE] The SEC is exploring an innovation exemption to facilitate the limited trading of tokenized securities. captainaltcoin.com
[● 3 SOURCES] Bitcoin price dipped below $63,500 following the US inflation data release. bitnewsbot.com · coincu.com
[○ 1 SOURCE] On-chain data indicates long-term Bitcoin holders are currently experiencing deeper unrealized losses than the broader market. bitcoinmagazine.com
[● 7 SOURCES] Money markets have reduced the odds of a September Federal Reserve rate hike to 40%, down from 54% a week ago. bitnewsbot.com · mix929.com · wdez.com · wixx.com · wxerfm.com · +2 more
[● 11 SOURCES] The July Consumer Price Index (CPI) increased 0.1% month-on-month and 3.4% year-on-year. bitnewsbot.com · mix929.com · wdez.com · bitcoinethereumnews.com · wixx.com · +6 more