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According to data released on Wednesday, inflation in the US during July came in at 8.5%.  

Wednesday’s Consumer Price Inflation (CPI) figures show inflation remained unchanged at 0.0% since June, however, it has increased 8.5% year-on-year. Today’s figures come in below expectations, which may well support the “peak inflation” narrative.

source: tradingeconomics.com

Analysts at Deutsche Bank said ahead of time, “we expect the headline year-on-year rate to finally dip after energy prices have fallen of late. We are looking for 8.8% (from 9.1%) with consensus a tenth lower.”

Fidelity Digital Assets director of research Chris Kuiper told The Block ahead of time that a “lower-than-expected inflation print or falling inflation will likely be viewed as positive for digital assets as it gives the Federal Reserve and other central banks a reason to pause or even reverse tightening the money supply.”

Bitcoin and ether saw major price swings last month as inflation in the US reached a 40-year high, jumping by 1.3% in June, an increase of 9.1% year-on-year. Bitcoin and ether spiked on the news of inflation remaining unchanged.

Kuiper expects macroeconomic conditions to continue to drive digital asset sentiment in the short-to-medium term, before going on to say “we think scarce digital assets like bitcoin will continue to provide an attractive alternative in a world of high leverage and financial repression in the longer term.”

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