Bitcoin News Today: July CPI Rises 2.7% as Crypto Prices Jump on Fed Easing Hopes

The U.S. Bureau of Labor Statistics reported that the July 2025 Consumer Price Index (CPI) rose 2.7% year-over-year, slightly below the anticipated 2.8%, and confirmed a 0.2% monthly increase [1]. This data, seen as a sign of moderating inflation, led to a sharp upward move in cryptocurrency prices, particularly in Bitcoin and Ethereum. Investors interpreted the figure as a positive signal that the Federal Reserve might ease monetary policy and cut interest rates in the coming months [2].

Following the release, Bitcoin surged above $119,000, while Ethereum climbed to $4,350, marking significant gains amid a broader risk-on market sentiment [3]. Analysts noted that the crypto market tends to react strongly to inflation reports, especially when the data aligns closely with expectations, reducing the likelihood of aggressive policy tightening [4]. The relatively stable CPI report reassured investors who had been wary of potential hawkish moves from the Fed, which had been seen as a headwind for high-beta assets like cryptocurrencies [5].

The market’s reaction also reflects historical patterns where CPI data influences layer one blockchain assets, which often exhibit high sensitivity to macroeconomic indicators [6]. With core CPI—excluding food and energy—remaining elevated at 3.1%, some uncertainty remains regarding the Federal Reserve’s policy direction. Analysts warn that if core inflation does not show further easing, the anticipated rate cuts may not materialize as expected, leading to short-term volatility in crypto markets [7].

Despite a 1.9% dip in Bitcoin over the previous 24 hours, the asset has remained stable around $118,500, suggesting a continued consolidation phase as market participants await the next major CPI report and potential Fed actions [8]. The current price movement underscores the strong link between macroeconomic expectations and asset performance, reinforcing the role of cryptocurrencies as speculative assets in a broader financial landscape [9].

Market observers are closely monitoring future data releases and the evolving inflation trajectory. If the Fed follows through with a 0.25% rate cut in September, as currently priced in at 87%, Bitcoin may see renewed bullish momentum. However, the path forward will depend on whether core inflation continues to moderate or remains stubbornly high, influencing policy decisions and, in turn, investor behavior in the crypto space [10].

Source:

[1] Decrypt - [https://decrypt.co/334643/bitcoin-ethereum-rise-us-inflation-cools-july](https://decrypt.co/334643/bitcoin-ethereum-rise-us-inflation-cools-july)

[2] CryptoPotato - [https://cryptopotato.com/bitcoin-price-reacts-as-us-cpi-for-july-comes-in-below-expectations/](https://cryptopotato.com/bitcoin-price-reacts-as-us-cpi-for-july-comes-in-below-expectations/)

[3] Coindoo - [https://coindoo.com/us-cpi-rises-2-7-what-it-could-mean-for-bitcoins-next-move/](https://coindoo.com/us-cpi-rises-2-7-what-it-could-mean-for-bitcoins-next-move/)

[4] CryptoDnes.bg - [https://cryptodnes.bg/en/mixed-u-s-inflation-data-fuels-rate-cut-hopes-setting-the-stage-for-crypto-volatility/](https://cryptodnes.bg/en/mixed-u-s-inflation-data-fuels-rate-cut-hopes-setting-the-stage-for-crypto-volatility/)