Grayscale Says U.S. CPI Could Be Short-Term Speed Bump for Crypto Market

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U.S. consumer prices rose in line with market expectations in August, but Zach Pandl, Grayscale's head of research, said inflation could still weigh on the cryptocurrency market in the short term.

On September 11, Pandl wrote on X, formerly Twitter, that a high CPI reading implies a greater likelihood of Federal Reserve rate hikes. He said that could act as a speed bump for the crypto market.

Still, Pandl said any market decline is unlikely to be steep. He added that for investors who missed the August price surge, a correction could present a new entry opportunity.

The U.S. Labor Department said August CPI rose 3.4% from a year earlier and 0.4% from the previous month. Both figures matched market expectations.