Crypto Prices Jump as Inflation Takes a Breather

Crypto markets saw a boost on Tuesday after the latest U.S. inflation numbers came in lower than expected.

Inflation Data

• Consumer Price Index (CPI): Rose by 2.7% over the past year.
• Economist Predictions: Slightly higher than actual numbers.
• Implication: Inflation is starting to cool down.

Cryptocurrency Movements

• Bitcoin: Reached $118,000.
• Ethereum: Climbed to $4,300.
• Solana: Dropped by 1.7%.

Detailed Inflation Insights

• Core CPI (excluding food and energy): Rose by 3.1% over the year.
• Higher than expected: Indicates persistent price pressures.
• Housing Costs: Major contributor to high inflation.
• Signs of Slowing: Housing costs may be easing.

Expert Opinions

• Russell Price (Economist): Latest report is a positive sign for near-term inflation.
• Concerns: Small increases due to new tariffs.

Federal Reserve's Stance

• Interest Rates: Fed cautious about cuts this year.
• Tariff Concerns: Potential to push prices up.
• September Rate Cut: Chances increased to 82.5% after weaker jobs report.

Fed Officials' Views

• Michelle Bowman (Fed Official): Voted for a rate cut due to job market weakness.
• Tariff Impact: Believes it will be temporary.
• Focus: Bringing inflation back to 2% target.

Tariffs and Inflation

• Expert Divide: Impact of Trump's tariffs on inflation.
• Stockpiling Goods: Companies avoiding tariffs, delaying price increases.
• Future Impact: As stockpiles run out, consumer prices may rise.