US Inflation Cools to 3.4% as Global Markets Rally, but Bitcoin Stagnates Near $64K

According to the U.S. Bureau of Labor Statistics, the Consumer Price Index (CPI) rose by 3.4% year-over-year in July, cooling slightly from June’s 3.5% increase and matching market expectations to relieve immediate monetary policy pressures. This macroeconomic shift has altered federal interest rate probabilities while driving distinct reactions across global equities, commodities, and digital assets.

U.S. Inflation Cools as Fed Rate Hike Probabilities Shift

The July inflation data showed core inflation easing from 2.6% to 2.5%, with monthly price increases limited to 0.1%.

Wall Street and Asian Markets React to Economic Data

Traditional markets responded positively to the inflation report, though without dramatic surges. On Wall Street, the S&P 500 gained 0.26% to close at 7,748.50 points, while the Nasdaq rose 0.54% to 26,588.49 points, supported by artificial intelligence infrastructure providers including Nvidia and Super Micro Computer.

In Asia, the MSCI Asia-Pacific index rose nearly 1% following the Wall Street session. South Korea’s Kospi jumped roughly 4.4%, with Samsung Electronics and SK Hynix gaining about 5% and 7% respectively. Japan’s Nikkei advanced nearly 1.9%, driven by semiconductor gains and a weakening yen, while Shanghai posted more modest advances and Australian markets lagged.

Bitcoin Remains Range-Bound Amid Institutional Inflows

Despite macroeconomic reassurance, Bitcoin has remained confined, trading near 63,500 to 64,000 dollars. Institutional demand persists through U.S. spot Bitcoin exchange-traded funds (ETFs), which recorded roughly $227 million in net inflows on Wednesday according to SoSoValue data, marking their fifth positive session. These inflows offset selling pressure from miners, corporate treasuries, and long-term holders without establishing a definitive breakout trend.

Derivatives markets reflect similar caution, with implied volatility near yearly lows and downside protections against drops toward $60,000 commanding higher prices than upside bets toward 70,000 dollars. Concurrently, wallets holding over 1,000 BTC reached an annual peak, indicating that major holders are absorbing sales made at a loss while awaiting upcoming producer price data, employment reports, and guidance from the Federal Reserve at Jackson Hole.