{"id":641279,"date":"2024-09-11T16:09:09","date_gmt":"2024-09-11T16:09:09","guid":{"rendered":"https:\/\/wncen.com\/?p=641279"},"modified":"2024-09-11T16:09:09","modified_gmt":"2024-09-11T16:09:09","slug":"bitcoin-tumbles-following-higher-than-anticipated-us-core-inflation-data","status":"publish","type":"post","link":"https:\/\/wncen.com\/breaking-news-ticker\/bitcoin-tumbles-following-higher-than-anticipated-us-core-inflation-data\/","title":{"rendered":"Bitcoin Tumbles Following Higher Than Anticipated US Core Inflation Data"},"content":{"rendered":"
The higher-than-anticipated US core Consumer Price Index (CPI) reading was followed by a decline in Bitcoin (BTC) price as it tumbled almost 1.5% to $56,168 at press time.<\/span><\/p>\n US headline CPI, the metric typically used to assess the inflation rate in the country, came<\/a> in according to expectations at 0.2% month-over-month (MoM), and 2.5% year-over-year (YoY) for August 2024. However, core CPI (MoM) printed 0.3%, slightly higher than the 0.2% forecasted by economists.\u00a0<\/span><\/p>\n For the uninitiated, the difference between the headline CPI and core CPI is the constituents of the basket of items they assess. While the headline CPI measures all item categories, including housing, transportation, services, medical care, food, and energy, core CPI excludes food and energy prices to give a more stable view of underlying inflation trends. <\/span><\/p>\n By removing the price of volatile items from its calculation, core CPI is often considered a more accurate indicator of long-term inflation.<\/span><\/p>\n Following the unexpected core CPI print, BTC witnessed a quick decline in price as it fell from around $57,000 to $56,168 at the time of writing. The wider crypto market displayed similar trends as Ethereum (ETH), Binance Coin (BNB), Solana (SOL), and Ripple (XRP), which are down by 2.1%, 1.3%, 4.6%, and 2.4%, respectively.<\/span><\/p>\n With the CPI data for August 2024 released, it seems all but certain that the US Federal Reserve (Fed) will begin its rate-cut cycle with a 25 basis points (bps) cut in September. In a note, Capital Economics\u2019 Paul Ashworth <\/span>said<\/span><\/a>:<\/span><\/p>\n On balance, we still think the Fed will begin its rate cutting cycle with a more modest 25 bps cut. The 3.2% annual core CPI was mostly due to a 5.2% increase in shelter prices, while the three-month annualized core CPI rebounded only to 2.1% from a weak 1.6%.<\/span><\/p><\/blockquote>\nUS Headline CPI Matches Forecast, Core CPI Exceeds It<\/span><\/h2>\n