Bitcoin and Ethereum prices increased following a report showing that U.S. consumer prices rose 2.7% year-over-year through July, less than the expected 2.8%. The Consumer Price Index (CPI) rose 0.2% month-over-month, matching a 0.3% increase in June. While Bitcoin rose to $118,000, Ethereum increased by 3.2% to $4,300. However, core CPI, which excludes volatile food and energy costs, rose by 3.1% year-over-year, slightly above expectations. This inflation reading follows a decision by the Federal Reserve to maintain interest rates steady for the fifth consecutive meeting, amid differing opinions within the committee regarding rate cuts. With these economic signals, the likelihood of a future interest rate cut slightly dropped to 82.5%, creating a mixed outlook for the crypto and stock markets in the coming weeks. High expectations were set for potential rate cuts due to signs of economic cooling, highlighting the interplay between inflation and cryptocurrency performance.

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