Crypto Markets Tumble After Inflation Report Fails to Spark Rally

Crypto markets have been trading lower on August 15, with Bitcoin slipping toward $62,800. The market is extending a pullback that began after this week's inflation report.

The July CPI report came in at exactly the expected rate of 0.1% month-over-month and 3.4% year-over-year. Typically, such a cooling inflation print would support a relief rally, but it didn't materialize this time around.

Institutional flows failed to provide any follow-through after the CPI release, with US spot Bitcoin ETFs recording a significant outflow in the days immediately following the report. Some analysts now argue that the old relationship between cooling inflation data and ETF buying has weakened, as flows increasingly follow price momentum rather than macro releases.