Bitcoin Price Holds Steady as US July CPI Comes in as Expected

The US CPI data now follows the weaker-than-expected jobs report from last week.

The US Bureau of Labor Statistics just published the Consumer Price Index data for July, which has essentially matched most expectations, with the regular CPI coming in at 3.3% to 3.4%.

The substantial increase in the CORE CPI of 2.5% was official, given the decline in June due to the decreasing energy costs at the time, which were considered misleading given the brief de-escalation in the Middle East war.

Reports ahead of the CPI release claimed that a modest increase would continue to reduce the chances for a Federal Reserve rate hike in September.

This narrative received further validation at the end of the previous business week when the US jobs report showed a substantial decline in non-farm payrolls, starkly contrasting with market expectations.

Although reality matched expectations for the July data, bitcoin’s price reacted with a small price decline. The asset had recovered from yesterday’s low at 63,200 and jumped to $64,400 minutes before the data was released.

However, it was stopped there, and its initial reaction has been quite modest, as it has dipped by a few hundred dollars. Nevertheless, analysts remain adamant that the CPI data is key to understanding the cryptocurrency’s next big move.