US inflation numbers cooled slightly in July 2026 to 3.4%. While CPI (Consumer Price Index) figures have dropped, prices continue to remain higher than what they were before the US-Iran conflict. Core inflation, which excludes volatile food and energy prices, rose by 0.2%. Let’s discuss if stocks and cryptocurrencies will react to the falling inflation figures.
Will Stocks And Cryptocurrencies Rise Due To Falling Inflation Numbers?
Source: Business Standard
The Asian stock markets are already seeing some relief today, August 14, 2026. The US stock market is also displaying a similar pattern in the pre-market hours. Investors are likely feeling at ease following the dip in inflation numbers. Tech stocks, in particular, are seeing increased price action.
The cryptocurrency market, on the other hand, has seen no big change. Bitcoin (BTC) continues to trade at the $63,000 price level, and most other crypto assets are following BTC’s sideways trajectory. Cryptocurrencies are among the riskiest assets in the financial market and risk appetite among investors is still low. It is possible that the Federal Reserve will keep interest rates unchanged, given that inflation is still above its 2% target. Higher rates may keep investors away from high-risk assets.
Also Read: Bitcoin Bear Market May Be At The Bottom: Rally From Here?
There is a chance that the cryptocurrency market will pick up steam over the coming months. Recent data shows that BTC is at its cost of production zone. This level has historically signaled a bear market bottom. Additionally, President Trump has said that a peace deal between the US and Iran could be finalized soon. A peace deal may also elevate investor sentiment and bring inflation down further. We could see an interest rate cut from the Federal Reserve later this year as a consequence. Such a development could lead to a bullish break out for the cryptocurrency market.