Cryptos move after US inflation, led by Bitcoin

Bitcoin and other cryptos surged after US inflation. The market's risk appetite increased as inflation came in below expectations. Bitcoin exceeded 24 thousand dollars. Here are all the developments in the crypto market...

Cryptos surged under the leadership of Bitcoin after the US inflation announced yesterday. US consumer inflation (CPI) for July was 8.5 percent on an annual basis. Consumer prices in the US did not increase compared to the previous month. As a result of inflation remaining below expectations, the markets also moved. Risk appetite increased as the US CPI data, which was announced below forecasts, increased the expectation that the US Federal Reserve (Fed) would be less aggressive in raising interest rates. The dollar continued to trade at low levels after posting the biggest losses in five months yesterday. The rise in risk appetite, on the other hand, mobilized stock markets and cryptos, which are seen as risky assets.

Markets Lowered Interest Rate Hike Expectations

The slowdown in US inflation may affect the size of the Fed's rate hikes in the coming months. While markets were pricing in a 75 basis points rate hike before the inflation data, they are pricing in a 50 basis points rate hike for next month after the data. The Fed's continued strong rate hikes strengthened the dollar and pushed the economy into recession. This increased pressure on risky assets, causing investors to return to safe havens. However, with the latest data, expectations that the Fed will put the brakes on increased risk appetite again, while crypto and stock markets were on a buying course.