The latest released U.S. core Consumer Price Index for July (CPI) has attracted widespread attention from the market. The data shows that the core CPI in July increased by 3.1% year-on-year, which not only exceeds last month's 2.9%, but also surpasses the market's general expectation of 3%, reaching a new high in nearly five months.



This data breaks the market's expectation of a continued decline in inflation. As an important economic indicator that excludes the impact of food and energy price fluctuations, the rise in core CPI indicates that inflationary pressures are accumulating. This trend may have significant implications for the Federal Reserve's policy direction, with the likelihood of a rate cut in September rapidly diminishing.

Given the current level of inflation and the significant gap between it and the Federal Reserve's 2% policy target, the Federal Reserve may continue to maintain a high interest rate environment and may not rule out the possibility of further tightening monetary policy.

The release of this data immediately triggered a chain reaction in the financial markets. The US dollar may gain support and strengthen as a result, while government bond yields are expected to rise. The Nasdaq index, which is mainly composed of technology stocks, may face adjustment pressure, and the prices of safe-haven assets like gold may also come under pressure.

It is worth noting that despite the core CPI data exceeding expectations, the US stock market still performed strongly, showing an upward trend after the opening. This seemingly contradictory market reaction has prompted investors to think deeply about the future direction of the economy.

At the same time, significant changes have occurred in the cryptocurrency market. Ethereum (ETH) has surpassed $4300, Bitcoin (BTC) has returned to the $120,000 mark, and Bitcoin's market value briefly exceeded that of Amazon. These changes reflect investors' increasing confidence in cryptocurrency as a hedge against inflationary pressures.

Overall, the release of this CPI data has not only affected traditional financial markets but has also had a profound impact on the cryptocurrency market. Investors need to closely monitor subsequent economic data and policy directions in order to adjust their investment strategies in a timely manner.
ETH-4.36%
BTC-3.89%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 10
  • Repost
  • Share
Comment
0/400
ChainWanderingPoetvip
· 2h ago
BTC is the real deal! It's going to take down Amazon directly.
View OriginalReply0
ChainMelonWatchervip
· 11h ago
No doubt it's BTC! The bull run is stable!
View OriginalReply0
MuzammilYasinvip
· 08-13 00:44
cxjxsjwxxitckccyd cdjxjjd vfkdydott. fodooyf. odyofof vodfogpoddoc vckdy
Reply0
TheGlamorousLifeInThvip
· 08-13 00:42
6666666666666666666
Reply0
SigmaBrainvip
· 08-12 21:50
The plate is rising again, btc is going to da moon!!!
View OriginalReply0
ValidatorVikingvip
· 08-12 14:51
validators staying strong while tradfi crumbles... just another day in valhalla tbh
Reply0
CryptoPunstervip
· 08-12 14:51
I feel like the Fed is playing hide and seek with me, mispredicting both the highs and the lows.
View OriginalReply0
ForkItAllvip
· 08-12 14:48
The crypto world can feast again!
View OriginalReply0
MemeTokenGeniusvip
· 08-12 14:26
Bearish on the dollar, go go go!
View OriginalReply0
PaperHandSistervip
· 08-12 14:26
Again big pump tomorrow will play people for suckers
View OriginalReply0
View More
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate app
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)