Bitcoin and Gold Prices Crash As Core CPI Runs Hot

Bitcoin and gold prices experienced sharp downward pressure following the release of the latest United States Consumer Price Index (CPI) report, which showed underlying core inflation running hotter than anticipated. While the headline figures met market expectations, sticky core components sparked immediate concern among investors regarding the path of future Federal Reserve monetary policy easing. According to the August inflation data, headline CPI climbed 0.4% month-over-month and 3.4% year-over-year, matching consensus estimates. However, the core CPI, which strips out volatile food and energy costs, rose 0.3% month-over-month versus the 0.2% increase forecast by economists, though the annual core rate held steady at 2.4%. The higher-than-expected monthly core reading adds fresh uncertainty to market expectations for aggressive interest rate cuts. The immediate sell-off across both cryptocurrency and precious metals markets underscores heightened sensitivity to macroeconomic data, as persistent core inflation may prompt policymakers to maintain restrictive policy for longer.