Crypto Prices Rise as Inflation Remains Above Fed Target
Crypto prices rose in response to the August inflation report from the Bureau of Economic Analysis (BEA), which showed that personal consumption expenditures price index increased 3.4% from a year earlier and core PCE, excluding food and energy, rose 3.0% annually.
The report's figures left headline and core inflation above the Federal Reserve's 2% target, making it relevant to markets tracking interest-rate expectations and broader financial conditions, including digital assets.
As a result, Bitcoin (BTC), Ether (ETH), and XRP advanced during the market move. Bitcoin reached $83,825.17, Ether fell as low as $2,679.29, and XRP settled at $1.4975.
The next market focus is how investors interpret inflation that remains above the Federal Reserve's target while crypto assets continue to trade against a broader interest-rate backdrop.