US Inflation Drops to 2.9%, Below Expectations of 3%
The US economy has slightly recovered from the consistent grip of inflation in July. According to the latest report from the Labor Department, the CPI inflation rate has dropped to 2.9%.
Key points:
- The CPI showed a drop in July, defying economists’ expectations of 3%.
- This is the lowest it has been since March 2021.
- Following the report, the crypto market turned bearish.
- Bitcoin dropped below $60,000, while Ethereum hovers around $2,600.
Bitcoin Drops Below $60,000 After US CPI Data Dropped
The inflation rate is lower than the expected number of 3% shared by the economists. Earlier data shows that June recorded 3% and May recorded 3.3% inflation rate.
The crypto market turned bearish right after the data came out. Bitcoin lost the $60,000 level, while Ethereum has plunged below the $2,700 level, dropping almost 2.5% in the last 24 hours.
Also read: Goldman Sachs Reveals $418 Million Stake in Bitcoin ETFs
The overall crypto market has been escaping from the slump from the last week. The price of Bitcoin fell as low as $47,000 amidst the major crypto crash that saw global crypto market cap plunge to the $1.88 trillion level.
However, the market has slowly turned positive in the past few days. As soon as the CPI data dropped, the market reversed course and turned bearish.
UPDATE (August 14, 2:20 PM UTC): Changed the H2 and the prices of Bitcoin and Ethereum as the market has turned bearish.
