Bitcoin (BTC) price remains above $61,000 following the release of US CPI data, which shows inflation falling to 2.9% in July. This decline in inflation is lower than the market's expectation of 3%.
The data from the US Bureau of Labor Statistics indicates that both core and headline inflation figures align with predictions, influencing market sentiment positively.
This is the first time since March 2021 that CPI inflation has been below 3.0%, setting the stage for a possible rate cut by the Federal Reserve next month.
Market expectations have shifted towards a 50 basis points rate cut, fueled by softer US Producer Price Index (PPI) data, increasing the likelihood of such a move to 52.5%. This scenario has led traders to trim their Federal Reserve’s rate-cut bets.
A decrease in CPI may boost consumers’ purchasing power, which is positive news for Bitcoin and crypto markets. Bitcoin's price gains following the release suggest a favorable market reaction.
