Bitcoin rose 0.5% to $119,000, while Ethereum rose more than 5% to $4,400 after US CPI rose 0.2% per month and 2.7% per year in July.
Eastern’s release at 1:30pm reflects a mixed profile. Headline CPI slowed from 0.3% in June to 0.2% in July, with an annual rate of 2.7%.
Core CPI printed 0.3% per month, at 3.1% on a 2.9%-12 month basis. These measurements have stabilized headline inflation year over year due to their slower monthly pace, with core inflation exceeding the Fed’s target zone on both measurements.
Consensus expectations are biased towards 0.2% monthly and 2.8% annual rate of the heading index, with skewed along 3.0%, with 0.3% core month of the month and 3.0% year-on-year. Therefore, the actual results matched the heading mom and core mom, below the heading Yoi consensus and above the core Yoi consensus.
The crypto market has appeared in print as macrodesks analyzed the combination of softer headline momentum and stiffer core trends. The move led Bitcoin to return to the top of the recent range, expanding Ethereum’s outperformance that day.
Price Action followed a familiar pattern of high impact data. This pattern concentrates liquidity near the release window and orders thinly to the numbers before refilling as numbers arrive.
In the context of a macro, the data continues to define narrow paths for the policy. Less monthly headlines reduce short-term pressure from energy and product categories, but Core’s 3.1% annual fees are attracting attention for the sustainability of service baskets and shelters.
The market tends to unbalanced these two measurements, with headline prints forming a broad range of risk appetite and a core print informing the policy glide path referenced in recent Fed communications.
The position of derivatives into the major pair is often amplified based on the initial movement after CPI, adjusting funding to new macro inputs. Today’s response coincided with that pattern, with BTC and ETH captured most of the immediate flow while the long tail was delayed.
For each BLS, the July report adds another data point to the medium-term sequence that the market evaluates along with future workforce and spending figures. For Crypto, taking home directly from this print was easy. Bitcoin regained nearly $120,000 in momentum, and Ethereum continued to tears at $4,400 after data.
