US CPI inflation rate fell to 3% in July, sparking market speculation
Recent data released by the US Bureau of Labor Statistics showed that the Consumer Price Index (CPI) cooled to 3% in June. This decline was lower than the 3.3% in the previous month, which was in line with market expectations. However, on a month-on-month basis, the CPI rose modestly by 0.1%, a slight increase from the stagnation between April and May. Despite the small increase, the overall decline has sparked optimism in financial markets, including in the cryptocurrency space, with speculation that the Federal Reserve's future meetings may yield favorable results.
The weaker inflation data has strengthened the belief that the Federal Reserve may consider cutting interest rates as early as September. Lower inflation rates generally mean less pressure on the Federal Reserve to maintain high interest rates. Therefore, this increases the prospect of more accommodative monetary policy, providing a bullish outlook for riskier assets such as cryptocurrencies. Investors and analysts are particularly focused on Bitcoin, hoping that its price will benefit greatly from these macroeconomic developments.