Bitcoin News Today: July US CPI Rises 0.2% Monthly Amid Persistent Core Inflation Pressure

The U.S. Bureau of Labor Statistics released the July 2025 Consumer Price Index (CPI) data, showing a modest rise in inflation amid ongoing economic recalibration. The headline CPI increased by 0.2% on a monthly basis, translating to an annual rate of 2.7%, consistent with the prior month but below the 2.8% forecast by economists [1]. Meanwhile, the core CPI, which excludes volatile food and energy prices, rose by 0.3% month-over-month and 3.1% year-over-year [2]. This suggests persistent inflationary pressure despite a more muted headline figure.

The data underscored the influence of factors such as rising shelter costs and ongoing tariff impacts, contributing to the firmness in core inflation [3]. These readings are likely to play a crucial role in the Federal Reserve’s decision-making process, particularly as it weighs the balance between inflation control and economic growth. The slightly weaker-than-expected headline CPI may signal a more cautious stance from the central bank, potentially easing concerns over aggressive rate hikes in the near term [7].

The cryptocurrency market responded dynamically to the release. Prior to the official data, Bitcoin had fallen to $118,600 amid heightened caution [3]. However, the actual figures, which came in slightly below forecasts, spurred a positive reaction, with Bitcoin and Ethereum both showing upward movement. This reflected investor optimism about the likelihood of more accommodative monetary policy [5]. Derivatives activity also indicated a bearish bias, with traders on platforms like Deribit favoring put options to hedge against potential market swings [6].

Analysts at UBS highlighted that while core inflation remains elevated, the softer headline CPI creates a more favorable environment for risk-on assets like cryptocurrencies [7]. Fidelity analysts echoed this sentiment, emphasizing that traders are closely watching CPI releases as a leading indicator of Federal Reserve policy, a key determinant of crypto valuations [4]. The broader financial landscape is also taking note, with discussions centering on the long-term persistence of inflation and the potential economic consequences of sustained tariff pressures [3].

The July CPI data has reinforced the importance of monitoring the labor market and future price trends to assess the trajectory of monetary policy. Investors are advised to remain cautious, with the latest figures serving as a reminder of the delicate balance between inflationary control and economic stability [7].

Sources:

[1] U.S. CPI Preview: Bitcoin $115K Bets in Demand as... (https://www.coindesk.com/markets/2025/08/12/bitcoin-usd115k-bets-in-demand-as-downside-fears-grip-market-ahead-of-u-s-cpi-report)

[2] July CPI report expected to show inflation accelerated amid... (https://finance.yahoo.com/news/july-cpi-report-expected-to-show-inflation-accelerated-amid-tariff-pressures-173606177.html)

[3] Bitcoin price today: eases to $119k as CPI data reveals... (https://www.investing.com/news/cryptocurrency-news/bitcoin-price-today-falls-to-1186k-as-caution-builds-ahead-of-cpi-data-4184129)

[4] Bitcoin Traders Watch CPI for Fed Cues: Crypto Daybook... (https://www.fidelity.com/news/article/us-economy/202508120715COINDESKCRYPTONW_d4cf18c8-e415-44dc-b91c-963be2d6c011)

[5] Bitcoin, Ethereum Rise as US Inflation Cools to 2.7% in July (https://decrypt.co/334643/bitcoin-ethereum-rise-us-inflation-cools-july)

[6] Bitcoin Climbs as US CPI Inflation Data Lands Below Target (https://beincrypto.com/bitcoin-climbs-us-inflation-data-lands-below-target/)

[7] Inflation Held Steady at 2.7% in July, CPI Report Shows (https://www.wsj.com/economy/cpi-inflation-july-2025-interest-rate-c9d31b19?gaa_at=eafs&gaa_n=ASWzDAiBh_xifSGUcc42R9E_uNgpMmNngJeoyaZVeyJHMBj1kWsji7JMbVu3&gaa_sig=XjirqkURH_d0f5HdLeS-4wZUhH_0Z93B11VZ_wt_BdOxTYVvxSH1TY6jz9y3VqD0GWhgdskymZ3irOb2svbgHA%3D%3D&gaa_ts=689bf70e)

[8] US CPI Data Creates Bullish Anticipation - What is the Best... (https://cryptodnes.bg/en/us-cpi-data-creates-bullish-anticipation-what-is-the-best-crypto-to-buy-now/)