High Inflation Casts a Shadow Over the Fed’s Path, but Crypto Bulls Remain Optimistic About a Surge in Q4 Liquidity

According to a report by Jinse Finance, U.S. wholesale prices rose by 0.9% in July, marking the largest monthly increase in over three years. This has significantly reduced the likelihood of a Federal Reserve rate cut in September. As traders scale back their bets on imminent monetary easing by the Fed, the prices of Bitcoin and Ethereum have retreated from recent highs. Analysts believe that the cryptocurrency market may experience seasonal weakness in September, but expect that increased global liquidity will provide support for a potential rebound in the fourth quarter.