Crypto Market Caps Slightly Decline Amid In-Line CPI Readings

Cryptocurrency market capitalization declined slightly in the past 24 hours due to the release of July's consumer price inflation readings from the U.S., which matched market expectations. Despite this, positive inflows into Bitcoin Spot ETF products limited losses.

The data showed headline annual inflation decreased to 3.4 percent from 3.5 percent in June, while the core component edged down to 2.5 percent from 2.6 percent in the previous month. Meanwhile, producer price inflation data due on Thursday is expected to reveal a jump to 0.2 percent from -0.3 percent in June.

The likelihood of a rate hike in the next Fed review in September has fallen to 36 percent from 48 percent a day earlier, while the probability of a rate hike in October has dropped to 52 percent from 62 percent a day earlier. This decline in rate hike expectations has had a positive impact on markets, with bond yields easing and the greenback retreating.