Asian stocks and US futures rose on July CPI at 3.4%. Bitcoin held near $63,000, and analysts see a Fed cut later this year as the next catalyst for crypto.
Alpha Score of 68 reflects moderate overall profile with strong momentum, strong value, weak quality, moderate sentiment.
US consumer prices rose 3.4% in the 12 months through July, the Bureau of Labor Statistics said in its latest Consumer Price Index report. Asian stock markets gained on Aug. 14, the day the data was released, and US futures pointed higher in pre-market trading. Tech names, a sector sensitive to inflation expectations, led the advance. Traders appeared to welcome the reading.
Core prices, which exclude food and energy, rose 0.2% on the month. The measure is watched closely because it filters out short-term swings in the inflation trend. Prices remain above pre-conflict levels, and the cooling trend has not fully reversed those gains.
Lower inflation eases pressure on the Federal Reserve to keep rates high, which is why stock investors tend to react quickly to CPI reports. The Fed may still hold rates unchanged for now; at 3.4%, inflation remains above the 2% target, a reason for caution.
The crypto market sat out the rally. Bitcoin held near $63,000 with little movement, and most altcoins tracked the same sideways path. Risk appetite across digital assets stayed low.
Higher interest rates tend to keep investors away from riskier assets, and crypto is generally viewed as higher risk than stocks. When investors turn cautious, these assets often see less trading activity. The same dynamic may explain why Bitcoin has not moved much despite the cooler inflation data.
Some data suggests Bitcoin is trading near its cost of production, a zone that has historically lined up with the bottom of past bear markets.
President Trump has said a peace deal between the US and Iran could be reached soon. A lasting agreement would ease global tensions and support investor confidence; lower energy costs would also help bring inflation down further in coming months.
A sustained decline in inflation would open the door to a Federal Reserve rate cut later this year, a step typically viewed as positive for higher-risk assets. Some analysts see such a cut supporting a stronger move higher for the crypto market.
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