In August 2023, the U.S. Consumer Price Index (CPI) increased by 2.9% compared to the same period last year, impacting the cryptocurrency market, including Bitcoin.
U.S. Inflation Data
According to the U.S. Labor Department, the Consumer Price Index in August 2023 was 2.9%, aligning with forecasts. Compared to July, CPI rose by 0.4%, slightly above the anticipated 0.3%. Meanwhile, the Core CPI, excluding food and energy, increased by 3.1% year-on-year.
Interest Rate Cut Expectations
Given these figures, experts expect that at the upcoming Federal Reserve meeting next week, there might be a 25 basis points cut in interest rates. The changes in consumer and producer prices have bolstered market confidence in upcoming policy easing.
Bitcoin's Reaction
Following the CPI data release, Bitcoin temporarily dipped to $113,823 but managed to rise above the critical level of $114,000. Analysts point out that $114,000 remains a critical resistance level, with $111,000 identified as the next support zone. There is a likelihood of further price swings depending on market reactions.
The U.S. inflation data demonstrates volatility in the market environment, creating uncertainty for investors. Monitoring Bitcoin's movements near these key levels will be essential in the coming days.
