The US core inflation rate for August dropped to 2.4% year-over-year, hitting its lowest level since 2021. However, on a monthly basis, the core consumer price index, or Core CPI, rose 0.3% compared to the previous month - slightly above the initial consensus of 0.2%.
Headline inflation held steady at 3.4% year-over-year, matching July’s figure exactly. The monthly headline CPI figure also met expectations with a 0.4% increase.
Bitcoin initially reacted to the economic data with a brief dip before reversing upward toward $79,000. The price action extends this week’s momentum, during which Bitcoin had already touched $79,837 and nearly formed a technical Golden Cross pattern.
However, this price action was not dominated by Bitcoin alone.
Ethereum and Solana Lead Altcoins
Ethereum recorded a 7.48% gain within hours of the data release. That buying pressure pushed the network’s coin back to the $2,611 level.
Solana followed suit with a 4.53% price surge. That increase placed Solana’s token back above the psychological $100 threshold.
Among the top ten coins, Zcash staged the most notable rally. The privacy-focused token gained 4.71% in 24 hours, bringing its weekly gains to 23.09%.
The surge across altcoins contributed to an expanding industry valuation. The total global crypto market capitalization has now climbed back to the $2.7 trillion threshold.
Final Data Ahead of September Meeting
The August CPI release plays a central role as it is the final inflation report ahead of the Federal Reserve’s policy-setting meeting on September 15-16, 2026.
The probability of a 25-basis-point interest rate hike at this month’s meeting stands at 69% according to the CME FedWatch data platform. Meanwhile, Polymarket showed a 62% probability, closely aligned with the 61% prediction on the Myriad platform.
Arguments for an interest rate hike have been circulating since the Federal Reserve’s July meeting. During that session, three regional Fed presidents dissented from the majority to support a rate increase.
Fed Chair Kevin Warsh reinforced similar signals at the Jackson Hole symposium, stating that the central bank still has work to do regarding inflation.
For crypto traders, the macroeconomic data release shifted market focus. The next bet now turns to the central bank chair’s decision table in the middle of the month.
Reported via Decrypt.
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Also read: Bitcoin Plunges Below $78,000 - US Bond Record Since 2007 Leaves Market Holding Its Breath
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
