US Inflation Cools to 3.4% as Bitcoin Holds Near $63,000

Key Point

US inflation cooled to 3.4% in July 2026. Core inflation, which excludes food and energy prices, rose 0.2%. Prices remained higher than before the US-Iran conflict. Asian stock markets showed relief on August 14, 2026, and US pre-market trading showed a similar pattern. Bitcoin traded near $63,000, while most crypto assets followed Bitcoin's sideways movement.

Why it matters: Lower inflation may improve expectations for future monetary easing, but inflation above the Federal Reserve's 2% target could keep risk appetite limited.

Market Sentiment

Neutral, Macro-driven, Range-bound.

Reason: US inflation cooled to 3.4%, but Bitcoin remained near $63,000 and broader crypto trading stayed sideways.

Similar Past Cases

A cooler US CPI reading in May 2024 lifted global stocks and pushed Bitcoin up 7.17% to $66,045. US Treasury yields and the dollar also fell after the release. (Reuters) The current situation differs because Bitcoin has not shown a comparable immediate move.

Ripple Effect

Lower inflation may reduce pressure for restrictive monetary policy and could support risk assets if investors expect easier financial conditions. If inflation continues to cool, then expectations for a later rate cut could become a stronger channel for crypto demand.

Opportunities & Risks

Opportunities: If a US-Iran peace deal is finalized and inflation continues to ease, then improving risk appetite could become a potential entry signal for risk assets.

Risks: If the Federal Reserve keeps rates unchanged because inflation remains above its 2% target, then reducing exposure to high-risk assets limits downside from continued low risk appetite.