Bitcoin, Ethereum & Chainlink rise fast after American inflation drive

The cryptomarkt had to deal with red numbers for a while, but this afternoon the rates have flown into the air again. The market got a hard push after the new inflation figures from the United States were announced.

Bitcoin (BTC) benefits with an increase above $ 119,000, but especially Altcoins go hard. Ethereum (ETH) and Chainlink (link) are full in the spotlights.

Almost everyone now expects an interest rate reduction

After two months in rising inflation, the annual consumer price index (CPI) of the month of June remained the same at 2.7 percent. While there was an increase to 2.8 percent.

The monthly inflation came in as expected at 0.2 percent. Core inflation (without the volatile food and energy prices) has risen from 3.0 percent to 3.1 percent. Month-on-month there was no surprise with a price increase of 0.3 percent

All in all, a favorable inflation report that further raises the chance of an interest rate reduction from the Central Bank in September. Since the bad job figures from earlier this month, they are finally expected to have a relaxation, which has not happened since December last year.

Lower interest rates make money cheaper and ensure that the amount of money in the economy is increased. This extra liquidity often looks for returns, and that has often caused price increases on the cryptomarket in the past.

Prior to the new CPI figures, around 84 percent of the futures market expected an interest rate reduction (of 0.25 percent) next month. Now that has risen to almost 94 percent, data from Fedwacht shows.

ETH is popping to the highest race since 2021

So good news, and we clearly see that in the rates. This morning, Bitcoin fell from $ 119,000 to $ 118,300, but after the report it was restored to $ 119,000. Yet it is still a lot lower than the $ 122,000 yesterday morning.

Ethereum responds much better. The Ethereum race shot from $ 4,280 to a peak of $ 4,425, a jump of more than 3 percent. It marks the highest level since December 9, 2021.

Chainlink even rose a little faster and went up with 5 percent in about 20 minutes. Other large coins such as Ripple (XRP), Solana (SOL) and Cardano (ADA) all won more than 2 percent.