US Inflation Decline Accompanied by Cryptocurrency Growth

Inflation reduction in the United States has been followed by sharp price increases in the cryptocurrency market. As a result, traders lost more than $112 million.

According to data published on July 14, the Consumer Price Index declined by 0.4% in June, marking the largest monthly decrease since April 2020. Annual inflation fell from 4.2% recorded in May to 3.5%, coming in below analysts' forecast of 3.8%. The price decline was primarily driven by cheaper energy resources and housing costs.

Following the publication of inflation data, cryptocurrency prices rose rapidly. As a result, traders expecting price declines lost more than $112 million in a single hour. Almost the entire loss, approximately $105.8 million, came from such trades.

Bitcoin increased by 2.5%, reaching a price of $63,800. Ethereum's value rose by 2.3% to $1,780, while XRP's price increased by 3%.

Investors expect with 94% probability that the Federal Reserve will not change interest rates at its scheduled meeting at the end of July. It is worth noting that the inflation decline also affected other assets. Gold prices increased by 1.9%, while silver rose by 2.6%.

Source: Investing.com