Inflation in the US Rose to 2.9% in August 2025, Bitcoin Dropped Below $114,000

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In August 2025, the Consumer Price Index (CPI) in the US rose to 2.9% year-on-year, marking the highest level since the beginning of the year. This data was released by the US Department of Labor.

This is reported by Business • Media

Inflation Trends in the US

Compared to the previous month, inflation increased by 0.2 percentage points: in July and June, the CPI was 2.7%. Thus, the August inflation rate became the highest since January 2025. This indicates a rise in consumer prices and a potential impact on the monetary policy of the Federal Reserve System.

Change in the CPI index in the US by month. Data: Trading Economics.

Impact of Inflation on Bitcoin’s Price

Following the release of the inflation statistics, the cryptocurrency market reacted swiftly: the price of Bitcoin fell below the psychological threshold of $114,000. At the time of preparing this material, the price of the first cryptocurrency was around $113,600.

BTC/USDT chart on Binance. Data: TradingView.

Analysts emphasize that movements in the CPI index traditionally influence investor sentiment regarding the Federal Reserve’s future decisions on interest rates. Specifically, QCP Capital noted earlier:

“The CPI figures will set the tone for expectations regarding the Fed’s rates.”

The current situation in the market demonstrates that inflationary pressure in the US continues to affect the value of key financial assets, including Bitcoin, which remains sensitive to macroeconomic statistics.