Bitcoin Fluctuates as US Inflation Data Holds Steady
The highly anticipated US inflation data has been released, and it's had an initial reaction from Bitcoin. The Consumer Price Index (CPI) figures for July were closely watched by markets, as they can impact expectations around the Federal Reserve's interest rate policy. If core inflation comes in below expectations, markets may price in a more dovish Fed policy, leading to buying pressure on risky assets like Bitcoin.
However, if the data shows higher-than-expected inflation, the Fed may be more cautious about interest rate cuts, causing a rise in the dollar and US bond yields. This could lead to short-term selling pressure on Bitcoin.
The July CPI figures are as follows: Consumer Price Index Annual is at 3.4%, Core Consumer Price Index Annual is at 2.5%. These numbers come after the previous announcements of 3.5% and 2.6%, respectively.