July CPI Report: Will Soft Inflation Boost Bitcoin or Revive Rate-Hike Fears?

The upcoming US Consumer Price Index (CPI) report for July is due on August 12, and economists forecast annual inflation easing to 3.4% from June's 3.5%. A softer print would likely be the most bullish outcome for Bitcoin and crypto markets.

A weak July jobs report has already trimmed Fed rate-hike odds, giving risk assets and Bitcoin a boost. However, a hotter-than-expected CPI could revive rate-hike expectations and weigh on Bitcoin and other risk assets, posing short-term market risk for crypto.