Core CPI Drops 3.1% as September Rate Cut Probability Hits 90% – Crypto Markets Brace for Impact

Inflation data just threw gasoline on the rate-cut bonfire. With core CPI bleeding out at 3.1% and traders pricing in near-certain Fed easing next month, digital asset markets are primed for volatility.

The Fed’s favorite inflation gauge craters

No sugarcoating it—the last inflation roadblock to rate cuts just collapsed. Traders now see a 90% chance of September easing, the highest conviction play since the 2023 banking crisis.

Crypto’s liquidity trap springs open

Cheap money’s back on the menu, and risk assets are lining up. Bitcoin’s historical inverse correlation with real yields suggests fireworks ahead—assuming the Fed doesn’t yank the punchbowl again like some monetary teetotaler.

Wall Street’s ‘soft landing’ fantasy meets crypto’s hard reality

Traditional markets might cheer this data, but crypto traders know better. When central banks panic-ease, it’s not because the economy’s healthy—it’s because something’s broken. The real question isn’t if liquidity floods risk assets, but which leverage junkies get washed out first.

Funny how ‘transitory’ inflation always seems to end with emergency rate cuts—right after election years. But hey, at least the Fed’s put options are cheaper than Bitcoin’s these days.