Bitcoin Buying Pressure Concentrates, Minimal Spread to Altcoins Despite Inflation Slowdown

The U.S. inflation indicators have slowed down, but the recovery of risk appetite in the cryptocurrency market remains limited. Buying pressure has concentrated on Bitcoin (BTC), and the spread to major altcoins like Ethereum (ETH) is not pronounced. The Consumer Price Index (CPI) for July rose by 0.1% compared to the previous month and by 3.4% year-on-year, while the core CPI increased by 0.2% month-on-month and by 2.5% year-on-year. The Producer Price Index (PPI) remained flat compared to the previous month, with a year-on-year increase of 4.7%. Although inflation indicators have slowed, the rate of increase still exceeds the Federal Reserve's target of 2%, which has not led to strong buying pressure on risk assets. In the cryptocurrency market, a BTC-centric trend is emerging, and the rotation of altcoins is still not evident. The situation in the Middle East and oil prices also act as variables, with WTI for September falling to $81.25 and Brent crude to $87.07. Researcher Kim Jun-seong analyzed that the shock from inflation indicators did not lead to strong easing expectations and risk appetite due to the slowdown in inflation. The FOMC minutes for July, to be released next week, and the trend in oil prices are expected to influence the sustainability of Bitcoin's rebound and the resumption of altcoin rotation.

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