U.S. Inflation Rate Declines to 3.4%, Bitcoin Stabilizes Around $64,000

Inflation data aligned with forecasts, while Bitcoin stabilized around $64,000 and Treasury yields decreased.

In July, U.S. inflation data met expectations, leaving the Federal Reserve's potential interest rate hike outlook largely unchanged. The Consumer Price Index (CPI) rose by 0.1% from the previous month, consistent with analysts' predictions after a 0.4% drop in June.

Year-over-year, the CPI increased by 3.4%, slightly down from 3.5% in June. The core CPI, excluding food and energy, also rose by 0.2% month-on-month, matching forecasts and remaining steady from June. On an annual basis, core CPI climbed to 2.5%, down from 2.6% the previous month.

Following the inflation report, Bitcoin experienced a minor fluctuation, dropping slightly from $64,400 to $64,080 before stabilizing around $64,000. Meanwhile, Nasdaq 100 futures increased by 0.7%.

Treasury yields continued to decline, with the two-year yield at 4.19%, down 3.6 basis points, and the ten-year yield at 4.66%, falling three basis points. This decline follows a disappointing employment report revealing an unexpected loss of 23,000 jobs in July.

Market analysts now estimate a 44% chance of an interest rate hike by the Federal Reserve at the upcoming September meeting, a decrease from the previous 48% likelihood before the inflation data release. Just a week ago, the probability of a rate hike was estimated at 54%.