Markets dip as US inflation comes in lower than expected

Key takeaways

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📉 Crypto dips after recent gains - Bitcoin and Ethereum slide as profit-taking hits markets.

📊 Sentiment still ‘Greedy’, but softening - Fear & Greed Index shows creeping negativity.

🇺🇸 Macro focus shifts to the Fed - US inflation data surprises lower, but pressure from tariffs looms.

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There’s volatility in crypto markets after recent gains. Bitcoin (BTC) has dipped, while Ethereum (ETH) has shed some of yesterday’s gains. As is often the case, the lower caps are following but with exaggerated downside. The Fear & Greed Index shows some negative creep in sentiment but still reflects ‘Greed’ among investors.

There’s no clear reason for today’s dip in crypto markets, other than some profit-taking after the recent price bump, say analysts. As Glassnode explains: “...a unique market dynamic persists where, despite elevated profit-taking, maturation pressures are overwhelming spending behavior.” 

In macro news, US inflation came in lower than expected, not by much, but still notable. Economists, however, warn that the inflationary impact of sweeping US tariffs has yet to be felt. More on this in the news section below.

Attention now turns to next week’s Fed interest rate decision, where the market is expecting another pause on rates, with some possible easing in September. With Bitcoin consolidating above $100K and sitting close to its recent all-time high, could that be the push markets need?

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In the markets… 

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🌍 Total crypto market cap ⬇️

The global crypto market cap is approximately $3.39 trillion, reflecting a 1.9% decline over the past 24 hours 

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🟠 Bitcoin (BTC) ⬇️

Price: $107,618, down 1.75% in the last 24 h
Daily high: $110,277
Daily low: $107,589 

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📈 S&P 500 ⬇️

SPY is currently down about 0.28% since yesterday’s close. 

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😐 Fear & Greed Index

The Crypto Fear & Greed Index stands at 61/100, indicating ‘Greed’.

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📊 Bitcoin Relative Strength Index (RSI) (14)

The 14-day RSI for BTC is approximately 54.3, well within the neutral zone (30–70), down from around 62 previously.

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‍Post Script…

Richard Teng on X: "The tide has turned. The SEC’s case against us is dismissed - justice, finally. Huge credit to Chairman Atkins and the Trump administration for standing up to regulatory overreach. The U.S. is back in the arena, ready to lead the world in blockchain innovation." / X

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BitcoinOS on X: "Litecoin is coming home to Bitcoin. 🟠🤝⚪️ BOS is officially activating @CharmsDev and ZK rollups on @litecoin, bringing its magical, programmable tokens and *bridgeless* bridging to Bitcoin’s silver twin. The UTXO renaissance is real—and it's uniting the old guard. 🧵👇 https://t.co/copF0S10k0" / X

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Conor McGregor on X: "I want to build on the amazing feats president @nayibbukele has achieved in El Salvador. Germany dropped the ball - Ireland will not. Using crypto, I plan on establishing a decentralised blueprint for sovereignty. One that others can also adopt to reclaim their nations. I" / X

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KULA on X: "Most projects launch first and worry about regulations later. Kula did the opposite. We built with compliance from day one. Legal frameworks, KYC, AML, all baked in, because real assets require real structure. That’s what makes Kula different. https://t.co/r8uopFwqcx" / X

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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.

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