Crypto Markets Surge on Inflation Optimism and Rate Cut Hopes

The crypto markets are currently proving resilient: While the Bitcoin price remains stable at around $118,000, the latest US inflation data is creating an optimistic mood among investors.

The core Consumer Price Index (CPI) rose by just 0.1% month-on-month in June – the fifth consecutive month of such low growth. This is fueling speculation that the US Federal Reserve (Fed) could cut interest rates in September. For you as a crypto investor, this could mean that even more capital will soon flow into the market.

Ether and Dogecoin as winners of the day

Ether (ETH) benefited particularly strongly: The price jumped above the $3,100 mark and recently gained 6.44%. This was due not only to positive market data but also to strong inflows into Ether spot ETFs. Furthermore, a recently passed stablecoin law in the US is adding to the excitement, as it underscores the importance of Ethereum as a foundation for tokenized dollars.

Dogecoin (DOGE) also saw a solid gain, rising 5.56% during the day. This brings Dogecoin’s weekly gain to around 15%. The meme coin remains popular with many investors and demonstrates that even fun projects in the crypto markets can generate returns.

Other altcoins with solid gains

In addition to Ether and Dogecoin, other major cryptocurrencies also gained ground: Solana (SOL) remained stable at $167 (+5.14%), while XRP traded at around $2.95, up 2.67%. BNB, Cardano, and Shiba Inu also performed well, benefiting from the overall positive sentiment in the crypto markets.

Strong inflows into Bitcoin ETFs

In another sign of continued institutional investor interest, US spot Bitcoin ETFs are recording net inflows for the ninth consecutive day. On Tuesday alone, $403 million was invested. This demonstrates that large investors continue to bet on the crypto market despite the uncertainties in the stock market.

Conclusion: Interest rate cut could bring new momentum on the crypto markets

The latest US inflation data and the prospect of an interest rate cut are providing tailwind for the crypto markets. Ether and Dogecoin have benefited particularly from this. If the Fed does indeed cut interest rates in September, this could herald a new rally for you as an investor. It remains exciting to see how the markets develop – but the signs currently point to growth and optimism.

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(Featured image by AlphaTradeZone via Pexels)

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