TLDR
- Bitcoin slipped to around $63,500 after July CPI came in line with expectations
- The inflation data trimmed odds of a September Fed rate hike from 46% to 38%
- Most major crypto tokens fell on the day, with Dogecoin down nearly 3%
- South Korea’s KOSPI entered a bull market, surging over 20% from July lows
- Super Micro Computer and CoreWeave each surged 19% on strong AI-driven earnings
July’s inflation data landed where economists expected, giving markets a brief sigh of relief without providing a strong reason to push prices higher. Bitcoin dipped slightly, most stocks held steady, and traders are already looking ahead to the next set of economic signals.
Bitcoin and Crypto React to CPI
Bitcoin fell to near $63,500 on Thursday, down about half a percent on the day and nearly 2% on the week. The July Consumer Price Index showed headline inflation up 0.1% for the month and 3.4% year-over-year. Core CPI, which strips out food and energy, rose 0.2% and eased to 2.5%.
The data matched forecasts almost exactly. That was enough to calm some fears about a near-term rate hike, but not enough to trigger a broad crypto rally.
Futures markets cut the odds of a Federal Reserve rate hike in September to about 38%, down from 46% before the release. Gold rose 1.3% in the immediate aftermath. Bitcoin gained around half a percent briefly before pulling back.
Gabe Selby of CF Benchmarks noted that Bitcoin moves most when inflation data forces a real rethink on rates. He said an in-line report removes a tail risk but does not create a catalyst on its own.
Most other tokens also fell. Dogecoin dropped nearly 3% to 7 cents. XRP fell over 1% to $1 and is down nearly 5% on the week. Solana slipped under 1% to $76, and Ether fell marginally to $1,880.
Hyperliquid’s HYPE was the exception, rising over 3% to $56. Tron added a small gain to just under 34 cents.
Stock Markets Find More Support
U.S. stock index futures edged higher in premarket trade on Thursday, with the S&P 500 futures rising 0.1%, Nasdaq 100 futures up 0.16%, and Dow Jones futures roughly flat.
The S&P 500 closed up 0.26% on Wednesday. The Nasdaq Composite gained 0.5%. The Dow Jones Industrial Average was flat.
Super Micro Computer and CoreWeave each jumped 19% after strong earnings for the June quarter. Both companies are closely tied to the AI sector, and their results helped support confidence in tech valuations.
South Korean stocks were a standout. The KOSPI index rose over 20% from its late-July lows, confirming a bull market. Samsung Electronics and SK Hynix were among the biggest contributors.
Not all earnings were positive. Cisco fell over 4% after hours following underwhelming results. Cerebras Systems dropped 17% on declining hardware sales.
Traders are now watching the Jackson Hole central bank gathering later this month, the September 4 jobs report, and the September 11 CPI release as the next key catalysts.
Producer price index data for July was due Thursday and was expected to add more clarity on the interest rate outlook.
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