Bitcoin and XRP Rally Following Key Federal Reserve Inflation Report
U.S. inflation data for August showed a slower-than-expected rise, offering new signs that price pressures may be easing after months of persistent readings. The personal consumption expenditures (PCE) price index increased by 0.3% month-over-month and rose 3.4% year-over-year, below the anticipated annual increase of 3.7%. Core PCE also came in lower than expected at a 0.2% monthly gain and an annual rise of 3%, reinforcing hopes that inflation is trending downward. The report follows the Federal Reserve's recent rate hike on September 16 to combat ongoing price pressures, marking its first increase since 2023. The softer data may support arguments for potential future interest rate cuts by suggesting current monetary policy is having an effect. Although inflation remains above the Fed’s target of 2%, improved readings have boosted risk sentiment in financial markets. In response to the report, Bitcoin rose about 2.1% to $85,399 and XRP gained roughly 3.2%. Ethereum climbed 2.2% while BNB advanced by 2.4%. The total crypto market capitalization increased approximately 2%, reaching around $2.89 trillion.
Topics: Federal Reserve inflation PCE index