The higher-than-expected US core Consumer Price Index (CPI) reading caused Bitcoin (BTC) to tumble 1.5% to $56,168. Headline CPI met expectations at 0.2% MoM and 2.5% YoY for August 2024, while core CPI exceeded predictions at 0.3% MoM.
Core CPI excludes volatile food and energy prices, offering a stable view of inflation. Bitcoin and major cryptocurrencies like Ethereum, Binance Coin, Solana, and Ripple declined following the CPI announcement.
Markets anticipate a 25 basis points rate cut from the Fed in September, potentially instilling confidence. Analysts speculate on BTC's future trajectory, comparing current trends to 2023 consolidation and contemplating impacts from the US Presidential Elections.
At press time, Bitcoin trades at $56,168, and the total cryptocurrency market cap is $1.94 trillion.
