August CPI unveiled: Crypto market’s response and trends
August's CPI report stirs the crypto market, with Bitcoin's surge driving gains. But despite lower social buzz, the crypto market holds strong above the $1 trillion mark.
- The crypto market’s CPI increased by 0.6% compared to the previous level of 0.2%.
- The market capitalization of the crypto market increased by almost 1%.
The cryptocurrency market has consistently responded to the United States Consumer Price Index [CPI] report in various ways. What has been the recent reaction of the crypto market to the latest CPI report?
How the August CPI played out
In August, the Consumer Price Index increased by 0.6%, which matched economists’ expectations of 0.6% and marked an increase from July’s 0.2%. On a year-over-year basis, CPI inflation climbed to 3.7%, exceeding forecasts of 3.6% and surpassing the previous month’s 3.2%.
The core CPI, which excludes food and energy costs, saw a 0.3% rise, surpassing economist expectations of 0.2% and compared to the 0.2% increase in the previous month.
However, on a year-over-year basis, core CPI decreased to 4.3%, aligning with economist forecasts and showing a decline from July’s 4.7%.
The latest CPI sees less social volume and dominance
A recent post from Santiment revealed that certain keywords related to the Consumer Price Index garnered increased attention compared to the previous iteration. Specifically, the term “CPI” generated a social volume of 581, while “inflation” received a social volume of 671.
These volumes represented percentages of 0.7% and 0.9%, respectively. It’s worth noting that when compared to the last CPI report, the press time volumes were higher.
However, the percentages observed in the latest report, which stood at 0.7% and 0.9%, were lower than those reported on 10 August. Additionally, the Santiment post emphasized that the relatively low percentages shouldn’t necessarily be interpreted as a negative development.
How the crypto market reacted to the report
According to data from CoinMarketCap, the cryptocurrency market experienced a 0.7% increase in the past 24 hours. Notably, Bitcoin [BTC] has been on an upward trajectory, influencing the broader crypto market and accounting for nearly 50% of the total market capitalization.
However, it’s important to note that the trading volume decreased by more than 10% over the same 24-hour period.
Despite the decline in trading volume, the cryptocurrency market’s total capitalization remained above $1 trillion at the time of writing.
