Bitcoin price saw upside momentum as U.S. consumer price index (US CPI) inflation cools further to 2.9%, as per the U.S. Bureau of Labor Statistics. After the PPI inflation reduced more than expected, the slowing U.S. consumer price index print will allow the U.S. Federal Reserve to start easing its monetary policy.,US stock futures were flat for Dow Jones, S&P 500 and Nasdaq Composite on Wednesday as investors look for cues on moderate price increases. Crypto traders turned bullish even before the CPI release due to buy-the-dip calls ahead of high anticipation for the Fed rate cuts starting in September.,The annual CPI inflation rate in the US eases to 2.9%, down from 3% in June, according to the data by U.S. Bureau of Labor Statistics. Compared to the previous month, the inflation increased to 0.2%, rebounding from a 0.1% drop in June.,Meanwhile, core US CPI inflation came in at 3.2%, easing for the fourth consecutive month and 3.3% last month. It is the lowest reading since March 2021. The monthly core inflation rate also rose to 0.2% from 0.1%. However, it’s lower than 0.3% in the previous month.,The cooling inflation in all terms indicates room for the Fed to announce a rate cut. The central bank would still wait for upcoming jobs data and PCE inflation data before confirming its stance on rate cuts. The market bets for a larger interest rate cut from the Federal Reserve in September.,CME FedWatch tool data indicates a 50% probability of a 50 bps rate cut in September. The data also show odds of 100 bps rate cuts by the Fed this year after the recent US CPI release.,,BTC price gained further after the inflation data, with a 5% jump in the past 24 hours. Bitcoin price is currently trading at $61,403, with a 24-hour low and high of $58,788 and $$61,572, respectively. Furthermore, the trading volume has decreased by 12% in the last 24 hours.,Meanwhile, ETH price is trading at $2,733, up 3% in the last 24 hours. The 24-hour low and high are $2,633 and $2,775, respectively. Furthermore, the trading volume has decreased by 19% in the last 24 hours, indicating a decline in interest among traders.,Favorable US CPI and PPI inflation data hint at a smooth crypto market recovery. Traders should focus on looking for more cues before taking a new position. The upcoming macroeconomic data this week is also crucial for the markets.,The US dollar index (DXY) dropped below 102.5, the March level. 10-year Treasury yield has also dropped to 3.822% after inflation print as markets are in favor Fed rate cut in its upcoming September decision. This is positive and supports BTC price rally.,
https://coinniu.com/breaking-bitcoin-price-to-rally-as-us-cpi-inflation-cools-to-2-9/
