Hot Inflation Clouds Fed Path, But Crypto Bulls Eye Q4 Liquidity Surge

Key Points

1. The U.S. Producer Price Index (PPI) rose 0.9% in July, its largest monthly gain in over three years, impacting market expectations and cryptocurrency prices.

2. Bitcoin fell 4.2% to $118,200, and Ethereum slipped 3% following the PPI report, with analysts noting the pullback as a reaction to inflation data.

3. Cardano (ADA) has shown resilience, outperforming other major cryptocurrencies despite broader market declines.

4. Treasury Secretary Bessent suggested a potential 50 basis points rate cut in September, citing revised employment data and inflation trends.

5. Ark Invest increased its crypto exposure by purchasing $177 million in Bullish (BLSH) shares post-IPO, signaling continued institutional interest in the crypto market.