The latest economic data shows that the inflation rate in the United States in July was lower than expected, providing a sigh of relief for the market.

The Consumer Price Index (CPI) rose by 2.7% year-on-year, lower than the previously expected 2.8%. The month-on-month increase also slowed from 0.3% in June to 0.2%. Following the release of this data, the cryptocurrency market experienced a brief uptick. Bitcoin briefly surged to $118,000, while Ethereum saw a more significant increase, breaking the $4,300 barrier with a rise of 3.2%.

However, Bitcoin still showed a 1.1% decline over the 24-hour period, indicating that there is still uncertainty in the market.

Economists analyze that housing prices account for a significant proportion in the CPI and have recently been a major factor driving inflation. However, data from July shows that this pressure is easing, bringing positive signals for the inflation outlook. Nevertheless, experts also warn that factors such as tariffs may exert upward pressure on inflation in the future.

After the release of this economic data, market expectations for the Federal Reserve to cut interest rates in September have risen significantly, with a probability of 82.5%. Generally, a lower interest rate environment is favorable for the performance of risk assets such as stocks and cryptocurrencies.

Nevertheless, investors should remain cautious. The cryptocurrency market is highly volatile and carries significant risks. Investment decisions should be based on thorough analysis and individual risk tolerance.

As economic data continues to be released and policy directions gradually become clear, how the market reacts is worth continuous attention. Both traditional finance and emerging crypto assets will seek their respective development paths within this macroeconomic context.