Bitcoin price managed to rise all the way till $26,300.
The CPI data will impact the Fed’s decision to raise interest rates in the future.
U.S. inflation reached 3.7% annually in August, according to the latest CPI statistics issued today by the U.S. Bureau of Labour Statistics, which beat the consensus expectation of 3.6%. Inflation has risen for two months in a row, according to the most recent figures. The Consumer Price Index (CPI) rose 3.2% in July, from 3% in June, marking its slowest rate of increase since March 2021.
After a rise of 0.2% in July, inflation increased 0.6% in August on a seasonally adjusted basis. Investors were anticipating the publication of the CPI data because of its potential impact on the Federal Reserve’s decision to raise interest rates in the future.
All Eyes on Federal Reserve
It’s worth noting that the Fed of the United States raised interest rates by 25 basis points the previous month. Investors were nonetheless wary, even though many experts predicted the Fed would soften its hawkish stance.
The CPI was expected to be 3.6% by Wall Street giants. While Barclays and Citi expected a 3.7% rise in the CPI for the last month, Visa and CIBC were anticipating a 3.5% spike.
The CME FedWatch Tool predicted a 91% chance of a pause from the Federal Reserve at the forthcoming FOMC meeting on September 20. The crypto market turned green post the announcement. Bitcoin price managed to rise all the way till $26,300. Moreover, Ethereum managed to climb to $1615 as per data from CMC.