US inflation hits year-high, bitcoin drops below $114,000
Date: 2025-09-12 Author: Henry Casey Categories: CRYPTO PAYMENTS
On September 11, the US Department of Labor presented inflation data for August 2025. According to the report, the consumer price index (CPI) in annual terms reached 2.9%. This value exceeded the July level by 0.2% and became the highest since January of this year. In June and July, inflation remained at 2.7%, which indicated stability, but August showed an acceleration in price growth.
The dynamics of the CPI in the US is monitored by investors as one of the key indicators of the state of the economy. The publication of fresh data caused a reaction in the financial markets, including the digital asset market. After the report was released, Bitcoin dropped sharply and fell below $114,000. At the time of publication, the value of the first cryptocurrency was around $113,600, although shortly before that it was above $115,000.
Data from the TradingView platform show that the decline occurred almost immediately after the publication of the report. This emphasizes the sensitivity of the crypto market to macroeconomic news, especially to changes in inflation expectations.
Earlier, in March 2025, analysts from QCP Capital noted that it is the CPI index that could become the main factor shaping expectations for the future monetary policy of the Federal Reserve. Higher inflation rates tend to increase the likelihood of tightening Fed policy, which puts pressure on risky assets, including cryptocurrencies.
Thus, the August growth of the CPI became a signal to the market about possible further changes in the regulator's policy. This caused concerns among investors and became one of the reasons for the decline in Bitcoin quotes. Although fluctuations in the cryptocurrency rate at the time of the release of macroeconomic statistics are common, the current decline has once again demonstrated a close relationship between the state of the global economy and the dynamics of crypto assets.
Experts note that in the coming months, the attention of market participants will be riveted to new publications on inflation and the actions of the Federal Reserve. The direction of movement of both traditional financial instruments and cryptocurrencies largely depends on how stable it is to control price growth.
Amid uncertainty, Bitcoin continues to remain under pressure, and analysts do not rule out new attempts to test lower support levels if inflation risks increase.
