Crypto Markets Hold Breath as US Inflation Data Looms

Crypto markets are holding their breath as they await the release of the US Consumer Price Index (CPI) data on Wednesday, August 12. The report is expected to show a slight slowdown in inflation from 3.5% annual rate in June to around 3.4%. This could have significant implications for expectations surrounding the Federal Reserve's September meeting.

Bitcoin has been trading in a narrow range of $63,500 to $64,000 ahead of the report, while Ethereum has remained close to $1,900. The lack of decisive movement reflects a market that is unwilling to take large directional positions before the inflation numbers are released.

Economists expect headline CPI to rise by around 0.1% from June and core CPI to increase by approximately 0.2% month over month. A weaker-than-expected reading could reduce pressure on the Fed to tighten monetary policy further, potentially supporting risk assets including cryptocurrencies.