US Inflation Meets Forecasts, Keeping Bitcoin’s Fed Bet Alive

U.S. July CPI and core CPI came in exactly in line with expectations, reducing the chance of an inflation-driven shock and keeping the market focused on Federal Reserve policy. Headline CPI rose 3.4% year over year versus 3.5% in June, while core CPI slowed to 2.5% from 2.6%. The neutral read supports a wait-and-see stance for the Fed ahead of its September meeting, where investors are still split on whether rates will stay unchanged or rise another 25 bps. For Bitcoin, the report removes an immediate bearish catalyst from hotter inflation, but also does not provide a strongly bullish surprise. Crypto traders now look to upcoming labor and inflation data, Treasury yields, the U.S. dollar, and Fed pricing for the next directional cue.