The market has been eagerly waiting for the US inflation data, that could set the stage for future rate hike moves of the US Federal Reserve. Meanwhile, the latest data seems to have fuelled the confidence of the market participants, especially in the crypto market, as evident by the positive momentum in the industry. So, let’s take a look at the recent inflation data and how the market is reacting to it.

Inflation in the United States, as indicated by the annual change in the Personal Consumption Expenditures (PCE) Price Index, reached 3.5% in August. The surge in the PCE index was in line with the market expectations. Notably, the US Bureau of Economic Analysis released this data, reflecting a slight uptick from the previous month’s 3.4%.

Meanwhile, the Core PCE Price Index, preferred by the Federal Reserve to gauge inflation, saw a modest increase of 3.9%, compared to the 4.3% surge recorded in July. On a monthly basis, the PCE Price Index rose by 0.4%, while the Core PCE Price Index increased by 0.1%. Both figures came in below the market expectations.

Furthermore, the latest report showed that the Personal Income and Personal Spending each grew by 0.4% on a monthly basis, aligning with expectations.

Following the report, the US Dollar faced diminished demand. At the time of writing, the US Dollar Index had dipped by 0.46% for the day, settling at 105.447. Meanwhile, the 10-year US Treasury bond yield was trading in negative territory at 1.66% to 4.526.

The recent data suggested that the inflation is cooling, indicating that the Fed’s effort has helped lower the inflation. However, some investors still remained concerned, as the inflation is still above the Fed’s 2% target range, which might give space to the regulators to further increase the policy rates this year.

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How The Crypto Market Is Reacting?

The crypto market has extended its early gains and continued moving towards an upward position following the news. The global crypto market added 1.98% over the past 24 hours and stayed at $1.08 trillion, while its volume rose 35.08% to $35.23 billion. Notably, the fear and greed index in the crypto market was at 42, suggesting a neutral condition in the sector.

Meanwhile, the gains in the broader market were led by the price surge in the largest cryptos by market. The Bitcoin price rose 1.77% to $26,994.29 during writing, and its volume grew 27.73% to $14.07 billion. Notably, over the last 24 hours, the crypto has reached a high of $27,259.50.

On the other hand, the Ethereum price soared 2.90% to $1,673.07 as of writing on September 29, with its volume rising 26.86% to $6.92 billion.

The meme coins were also in the green among other altcoins. The Dogecoin price rose 1.70% to $0.062 as of writing, while the Shiba Inu price grew 1.55% to $0.000007366 in the last 24 hours.

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