After the US inflation data exceeded expectations, Bitcoin surged above $58,000, sparking speculation about the Federal Reserve's interest rate decision.

On Thursday, the cryptocurrency market saw a sharp increase, with the price of Bitcoin breaking through $58,000. This increase occurred after the recent US inflation data slightly exceeded market expectations. Experts predict that these data may impact the Federal Reserve's interest rate decision, reducing the likelihood of a significant rate cut in the next meeting.

In August, the Core Consumer Price Index (CPI) rose by 0.28%, which measures the change in prices of goods and services excluding food and energy. This exceeded the analysts' forecast of 0.2%. Continued inflation suggests that the Federal Reserve should proceed with caution, as high inflation rates typically make it difficult to make significant interest rate cuts.

Market reaction to economic indicators

The release of inflation data has led to a positive response in the cryptocurrency market. As of the afternoon, Bitcoin has risen by 2.4% to $58,058, and Ethereum has also followed with a 1% increase to $2,362. Other digital currencies such as BNB, Solana, Dogecoin, Toncoin, Cardano, Shiba Inu, and others have also shown an upward trend, indicating a generally positive sentiment in the digital asset market.

According to FedWatch from the Chicago Mercantile Exchange (CME Group), the likelihood of future actions by the Federal Reserve has changed. Meanwhile, the probability of a 25 basis point interest rate cut has increased from 66% before the data release to 85%. On the other hand, the probability of a larger 50 basis point rate cut has decreased from 34% to 15%.

Impact on the cryptocurrency market

CoinDCX Research analysts discussed market trends and stated that neutral to positive CPI data helps improve market sentiment. In addition, the global market's recovery has also played a role in the recovery of Bitcoin and other altcoins.

The rebound in the cryptocurrency field comes at a time when the mainstream market is fluctuating due to economic conditions. The relationship between inflation data and the actions taken by the Federal Reserve remains a key factor in influencing both traditional and cryptocurrency markets. As investors seek ways to protect their portfolios, cryptocurrencies are also becoming a popular means of hedging against inflation and interest rate changes.