Crypto and stocks rise, and the latest inflation numbers are complicating things for the Fed
📈 Inflation rose 0.4% in August - pushing annual CPI to 2.9%
🏦 Fed still expected to cut rates despite hotter inflation
🟠 Bitcoin topped $116K - before settling near $115K
🌊 Solana surged 6% in 24 hours - outpacing broader crypto markets
Yesterday’s August inflation numbers showed a slight uptick in the Consumer Price Index, complicating the Fed’s interest rate decision next week. Fed Chair Jerome Powell and his team are weighing inflationary pressures, which call for higher interest rates to curb spending, against US labour market pressures, which argue for lower rates to support growth. Consumer prices rose 0.4% in August, lifting the annual inflation rate to 2.9%, the highest since January.
CNN quoted Preston Caldwell, chief US economist at Morningstar: “The latest inflation data does support the notion that inflation is reaccelerating, but at a gradual pace. It won’t stop the Fed from cutting next week.” The Fed’s job is to balance full employment with price stability, a tricky task at the moment.
Markets still appear convinced rates will be trimmed. US stocks remain in the green, while Bitcoin briefly broke above $116,000 yesterday before settling around $115,000 this morning, nudging the Fear & Greed Index to 50, squarely in Neutral territory. Across crypto, most majors are steady, with Solana (SOL) the standout, adding 6% in the past 24 hours.
All eyes now turn to the Fed’s September 17–18 decision.
In the markets…
🌍 Total crypto market cap ↗️
The global crypto market cap is approximately $3.97 trillion, up 2.09% over the past 24 hours.
🟠 Bitcoin (BTC) ↗️
Price: $115,000 up 0.76% in the last 24 h.
Daily high: $116,309
Daily low: $113,496
📈 S&P 500 ↗️
SPY is currently up about 0.85% since yesterday’s close.
📈 Nasdaq 100 ↗️
The Nasdaq 100 is up about 0.6% overnight.
😐 Fear & Greed Index
The Crypto Fear & Greed Index stands at 50/100, in Neutral.
Data is correct as at 12 September, 08:21 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.
