Bitcoin shows little volatility amid the announcement of the US inflation rate

Yesterday, August 14, the U.S. Department of Labor released consumer price index (CPI) data, according to which inflation fell to 2.9% year-on-year in July 2024. This is the most significant decline in 2024, and bitcoin BTC $65,880.31 Bitcoin 0.40% Market capitalization $1.3 trillion VOL. 24 hours $0.55 billion immediately reacted with a sharp rise. The market leader broke through the $ 61,000 level, CryptoPotato reports.

Inflation has been declining for the second month in a row, as in June it slowed from 3.3% to 3%. At the same time, in monthly terms, the index, which excludes food and energy, increased by 0.2%.

The news contributed to the growth of bitcoin, and now the asset is trying to gain a foothold at $ 61,000. Experts from QCP Capital note that the «soft» CPI may support the recovery of risky assets, such as stocks and cryptocurrencies, amid the expected interest rate cut by the US Federal Reserve. The next Fed meeting is scheduled for September 2024, and given the decline in inflation, the likelihood of a rate cut is increasing, which could have a positive impact on crypto assets.

At the time of writing, bitcoin is trading at $ 57,981, down 4.8% per day.