In August, the US Consumer Price Index (CPI) rose by 0.4%, up from 0.1% in July. Annual inflation remained at 3.4%, while the core CPI, excluding food and energy, increased by 0.3% monthly and slowed to 2.4% annually.
Bitcoin experienced a sharp drop to $76 037 immediately following the data release, down from levels above $77 000 on Binance. However, the asset recovered within 30 minutes, later exceeding $78 700.
Ethereum also saw growth, rising from a daily low of approximately $2432 to $2623. Other top-10 assets followed this trend, with ZEC and XRP showing the highest hourly gains of 5.47% and 4.56% respectively.
Energy costs were the primary driver of inflation, with gasoline prices rising by 3.9%. Following the report, the probability of a 25 basis point interest rate hike by the Federal Reserve on September 16 increased to 85.6%, up from 68%.
