Bitcoin News Today: July CPI Stable at 2.7% as Bitcoin Surges 1.1% Post-Data Release

The U.S. Consumer Price Index (CPI) remained stable at 2.7% year-over-year in July 2025, according to the U.S. Bureau of Labor Statistics [1]. This figure, slightly below the forecasted 2.8%, signals a moderate slowdown in inflation, with the monthly CPI rising by 0.2%—a drop from June’s 0.3% increase. Core CPI, which excludes volatile food and energy components, climbed to 3.1% annually, indicating persistent inflationary pressures in key sectors [1].

Bitcoin responded to the data with a 1.1% dip in the 24 hours leading up to the release, before surging to $118,000 in its immediate aftermath [1]. Ethereum also saw a 3.2% increase, reaching $4,300. The market reaction highlights the continued sensitivity of cryptocurrency prices to macroeconomic indicators, particularly those influencing monetary policy.

Analysts suggest that the current CPI reading and the likelihood of a Fed rate cut could bolster Bitcoin’s appeal as an inflation hedge [1]. With traders now pricing in an 82.5% probability of a September rate cut—down from 86% before the data was released—investor sentiment remains cautiously optimistic. Fed Governor Michelle Bowman has previously argued in favor of a rate cut, citing signs of fragility in the labor market and slowing economic growth [1]. However, the Fed has opted to hold interest rates steady for a fifth consecutive meeting, maintaining a cautious stance amid mixed signals from the broader economy.

Core CPI’s 3.1% increase underscores the lingering inflationary pressures, particularly in sectors such as housing. Russell Price, chief economist at Ameriprise Financial, noted that shelter costs showed signs of moderation in July, a positive sign for near-term inflation control [1]. Yet, he warned that inflation could still rise due to President Donald Trump’s proposed tariffs, which have sparked debate within the Federal Reserve about their potential to reignite inflation.

Scott Lincicome of the Cato Institute observed that while Trump’s tariffs have not yet had a measurable impact on inflation—due in part to ongoing exemptions and stockpiling by U.S. companies—their effects could become more pronounced in the fall as inventories deplete [1]. This potential for renewed inflationary pressure introduces an element of uncertainty for markets and investors.

With the July CPI report confirming stable yet persistent inflation, the focus remains on the Federal Reserve’s policy direction. A rate cut could provide a tailwind for Bitcoin, potentially pushing it toward the $125K level before year-end, as some analysts have forecast [1]. However, such outcomes remain contingent on evolving economic conditions and the Fed’s response to them.

Source: [1]title1.............................(https://decrypt.co/334643/bitcoin-ethereum-rise-us-inflation-cools-july)