The US Department of Labor has released fresh data on the consumer price index (CPI). In August, the inflation rate was 2.9%, which is higher than the previous value of 2.7%. The growth turned out to be slightly higher than analysts’ forecasts and caused a wave of discussions in the traditional and cryptocurrency markets.
What does a higher CPI mean?
- The acceleration of inflation is increasing pressure on the Federal Reserve System (FRS), which may keep interest rates high for longer.
- For traditional markets, this is a signal of caution: rising yields on government bonds and a possible correction in stocks.
- The consequences for cryptocurrencies are twofold: in a short time, capital outflow from risky assets, including BTC and altcoins, is possible.
Impact on cryptocurrencies
- Bitcoin may experience short-term pressure if investors start moving into the dollar and bonds.
- Ethereum and altcoins have traditionally reacted more strongly to the outflow of liquidity, which can lead to increased volatility.
- In the long term, CPI growth supports the narrative of cryptocurrencies as a hedging instrument against inflation. This could attract institutional investors to bitcoin as “digital gold.”
Output
Inflation in the United States at 2.9% increases uncertainty in the markets. For the crypt, this means a possible decline in quotations in the coming days, but at the same time strengthens its strategic attractiveness as a protective asset against the depreciation of the dollar.
