Crypto and stock markets dip as US inflation comes in hot
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📉 Bitcoin dip-and-bounce - BTC fell to $107,300 before rebounding just under $110,000, but bulls failed to defend the level.
📊 Broader crypto mirrors BTC - Most coins followed the dip, with Maker (MKR) among the few to post modest gains.
🏦 Inflation vs. labour risk - US core PCE inflation rose 2.9%, keeping Fed policy decisions in focus.
👀 Next big test - US unemployment data on 5 September.
Bitcoin dipped to around $107,300 over the weekend before rebounding to just below $110,000 to start the week. Bulls were unable to defend the key $110,000 level, which had been tested repeatedly last week. The broader crypto market mirrored the same dip-and-bounce pattern, with a few tokens like Maker (MKR) seeing small overnight gains.
The Nasdaq 100 also opened the week in the red, down 1.15% since the last trading session, with analysts pointing to the latest PCE data from the US as a possible trigger. The personal consumption expenditures price index showed that core inflation, which strips out food and energy, rose at a 2.9% seasonally adjusted annual rate. “The Fed opened the door to rate cuts, but the size of that opening is going to depend on whether labor-market weakness continues to look like a bigger risk than rising inflation,” Ellen Zentner, chief economic strategist at Morgan Stanley Wealth Management, told CNBC. “Today’s in-line PCE Price Index will keep the focus on the jobs market. For now, the odds still favor a September cut.”
Investors are now watching key September economic releases, particularly the US unemployment report on 5 September, which could clarify how labor-market pressures stack up against inflation risks.
In the markets…
🌍 Total crypto market cap ↗️
The global crypto market cap is approximately $3.81 trillion, up 0.31% over the past 24 hours.
🟠 Bitcoin (BTC) ↗️
Price: $109,791 up 0.57% in the last 24 h.
Daily high: $109,771
Daily low: $107,295
📈 S&P 500 ↘️
SPY is currently down about 0.64% since yesterday’s close.
📈 Nasdaq 100 ↘️
The Nasdaq 100 is down about 1.15% overnight.
😐 Fear & Greed Index
The Crypto Fear & Greed Index stands at 39/100, in Neutral.
Data is correct as at 29 August, 09:37 GMT.
Cautionary Notes
It's definitely tempting to get swept up in the excitement, but please heed these words of caution: Do your own research, only invest what you can afford, and make good decisions. The indicators contained in this article will hopefully help in this. Remember though, the content of this article is for information purposes only and is not investment advice or any form of recommendation or invitation. The Digital Commonwealth always advises you to obtain your own independent financial advice before investing or trading in cryptocurrency.
