The post July CPI Data Looms: What Analysts Say appeared on BitcoinEthereumNews.com.

Cryptocurrency markets fell from $4 trillion to $3.9 trillion as investors await July’s US inflation data. The Consumer Price Index release could impact the Federal Reserve’s September rate cut plans. Bitcoin Retreats as Markets Turn Cautious As of 08:00 UTC on Tuesday, Bitcoin trades around $118,900 on CoinMarketCap. The leading cryptocurrency briefly surged past $122,000 on Monday. However, it failed to hold this level as major US stock indexes closed lower. The cautious market atmosphere stems from recent surges in risk assets. These gains came from expectations of a Federal Reserve rate cut. According to the CME FedWatch Tool, markets price in three rate cuts this year. According to the CME FedWatch Tool, markets price in three rate cuts this year. A Fed rate cut would boost market liquidity. This would apply upward pressure on Bitcoin and Nasdaq prices. However, there is a potential problem. US inflation shows no signs of falling from the 3% range. The Fed’s inflation target is 2%. Policymakers worry that cutting rates too early could reignite inflation. Wall Street Eyes Critical CPI Data This is why Tuesday’s July CPI release is crucial. Experts forecast a 2.8% year-over-year CPI increase. This is up slightly from the previous month’s 2.7%. The month-over-month increase is expected to be 0.2%. This slows from the prior 0.3%. Core CPI excludes volatile food and energy prices. It is projected to remain high at 3.1% yearly and 0.3% monthly. The July CPI figures are highly significant for the Trump administration. Major Wall Street banks say recently implemented Trump tariffs will drive July price increases. Morgan Stanley forecasts Core CPI will rise 0.32% monthly. This accelerates from June’s 0.23% increase. The bank expects core goods to lead the price surge. Core goods are more exposed to tariffs. Their base case is that most…

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Filed under: News - @ August 12, 2025 9:29 am