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American CPI inflation data emerged on Thursday, whereby the expectations of a federal reserve rate were lowered next week and caused a modest dip in crypto prices.
The consumer price index (CPI) increased by 2.9% on an annual basis in August, in accordance with predictions, while the CPI core (excluding volatile food and energy prices) was preceded from July 0.4%, slightly above estimatesData from the Bureau or Labor Statistics have shown.
Polymarket gamblers were quickly priced in a speed reduction in September, with a chance of a reduction of 25 basic points that rises from 79%before the data to as high as 91%, before they fall back to almost 84%.
Polymarket September rate reduction contract (source: Polymarket))
Conversely, the chance of a 50 BPS rate rate decreased from 18.9% to 9.1% before it rises to 14%. A soft job report on Friday and the weak PPI numbers of Wednesday had reduced bets on a bumpers speed this month.
The Cme fedwatch tool Also reflects almost unanimous expectations, with analysts allocating a 90.8% chance that the FED rates with 25 basic points are trim during the meeting of 17 September.
“The core was as expected, but CPI defeated the main number, and we think that this will hold a cut of 25 BP next week and will not exclude any further cutbacks in October and December,” said Bloomberg Intelligence Chief US strategist Ira Jersey.
Well-known Bitcoin investor Lark Davis also said that “tariff reductions are being confirmed!”
𝗝𝗨𝗦𝗧 𝗜𝗡 𝗜𝗡: US CPI is 2.9%, as expected.
Rate reductions are confirmed! pic.twitter.com/iievtdi5ak
– Lark Davis (@TheCryptolark) September 11, 2025
An interest rate reduction will reduce loan costs and increase liquidity, and usually encourages more bets on riskier activa classes such as cryptocurrencies.
Bitcoin glides after the CPI release
Nevertheless, the crypto market tapped lower in the hour after the data, with Bitcoin (BTC) slips 0.6%, from $ 114,300 to $ 113,516. Many of the top 10 cryptos also withdrew no less than 1%.
Top ten cryptos’ price performance (source: Mint market cap))
Data from Coinmarketcap shows that Altcoin leader Ethereum (ETH), Ripple’s XRP, leading meme coin Dogecoin (Doge) and Charles Hoskinson’s Cardano (ADA) beat the biggest beat in the top ten list names after the CPI data had been completed.
ETH corrected 1.13% to act at $ 4,395.26, while XRP, Doge and ADA fell 1.13%, 1.83% and 1.67% respectively.
Dollar index drops as confidence in the USD weakens
The US Dollar Index (DXY) fell more than 0.3%in the same period. The index is a measure of the US dollar compared to a basket with strange currency.
TradingView -Data show that the index had been in a steady rebellion for the past 24 hours. During this period it rose from 97,627 to a highlight of 98,036. However, the latest inflation release has erased the 24-hour profits.
Hour table for DXY (Source: Tradingview))
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