Economists expect the US consumer price index (CPI) to rise 0.6% in August, three times faster than July's 0.2%. On an annualized basis, the CPI should grow by 3.6% versus 3.2% in July.

- Resurgent oil prices will be blamed for the increase in inflation: WTI Crude Oil has reached a new high for 2023, approaching $89 per barrel, which is 33% higher than in early July.

- Core CPI (excluding food and energy) is expected to fall to 4.3% annually in August from 4.7% in July, the slowest pace since mid-2021.

Impact on Bitcoin:

- The summer rally for Bitcoin (BTC) and the cryptocurrency market has completely lost steam, with BTC falling below $25,000 on Monday, its weakest level since mid-June, and Ethereum (ETH) falling to a six-month low.

- One reason is interest rates, which look set to remain higher and for longer than expected.

- Although the Federal Reserve will keep its benchmark rate at its policy meeting this month, investors' hopes of a rate cut in the near future have been dashed by a strengthening economy and inflation.