Bitcoin (BTC) edged higher to $118,500 after the latest US inflation data showed prices rose 2.7% annually in July—matching expectations and keeping hopes alive for a September Fed rate cut.

Key Takeaways from the CPI Report

📉 Inflation holds at 2.7% (same as June)
💼 40% of CPI components still seeing high inflation
📊 90% chance of September rate cut (per CME FedWatch)

Why This Matters for Bitcoin

✅ Rate cuts typically bullish for risk assets like BTC
⚠️ Tariff pressures linger (Trump’s trade policies)
📈 BTC reaction muted – Markets already priced in CPI

What Analysts Are Saying

• Bull Theory: “Fed has to cut rates due to weak jobs data—CPI just adds confidence.”
• Miles Deutscher: “September cut looks locked in despite sticky inflation.”

Bitcoin Price Outlook

🔹 Immediate resistance: $120,000
🔹 Support holds at $118K – Needs breakout momentum
🔹 Fed decision in September could be next catalyst