Recent US inflation data showed alignment with analysts' expectations, subsequently leading to changes in the cryptocurrency market.
US Inflation Data
The Consumer Price Index (CPI) rose by 2.9% year-on-year in August, in line with forecasts. The core CPI, excluding volatile food and energy prices, advanced by 0.4% from July, slightly exceeding estimates. This led to an increase in expectations for a Federal Reserve rate cut next week.
Crypto Market Reaction
The cryptocurrency market reacted with a decline in prices. Bitcoin slid by 0.6%, dropping from $114,300 to $113,516. Many of the top 10 cryptocurrencies also saw price decreases. Ethereum corrected by 1.13%, Ripple's XRP by 1.13%, Dogecoin by 1.83%, and Cardano by 1.67%. Despite rate cut expectations, which typically benefit risky assets, cryptocurrencies experienced a slight correction.
Dollar Index Changes
The US Dollar Index (DXY) also showed a decline, dropping by more than 0.3% during the same period. Following the inflation data release, the index revisited the level of 97.627, which had recently been in an upward trend.
In conclusion, despite stable inflation data and rate cut expectations, the crypto market is experiencing a correction. This highlights the instability and volatility of cryptocurrency assets amidst macroeconomic factors.
