Bitcoin Shrugs Off Cooler Inflation Data

Bitcoin's price barely budged after the release of July's US inflation data, which came in as expected. The Consumer Price Index rose 0.1% from June, matching economists' forecasts, according to the US Bureau of Labor Statistics.

The CPI had fallen 0.4% in June, and over the past 12 months, consumer prices increased 3.4% before seasonal adjustments. Shelter costs drove roughly two-thirds of July's overall monthly increase, rising 0.1%, while energy prices fell 1.5% as cheaper gasoline helped offset increases elsewhere.

Core inflation, which excludes volatile food and energy prices, rose 0.2% in July after remaining flat in June. Core prices increased 2.5% over the past year.

Investors closely watch inflation because it can influence the Federal Reserve's decisions on interest rates and borrowing costs throughout the economy. Lower inflation can encourage the Fed to cut rates, making riskier investments more attractive.