U.S. August CPI rises 3.4%, may weigh on crypto, Grayscale says

  • Zach Pandl said August inflation could weigh on cryptocurrency markets.
  • August CPI rose 3.4% year over year and 0.4% month over month.
  • Both August CPI increases matched market expectations, Labor Department data showed.

U.S. consumer prices rose 3.4% in August from a year earlier and 0.4% from the previous month, with both readings matching market expectations, the Labor Department said. Zach Pandl, Grayscale's head of research, wrote on X, formerly Twitter, on September 11 that the CPI (Consumer Price Index, a measure of consumer-price changes) could weigh on the cryptocurrency market in the short term by increasing the likelihood of Federal Reserve rate hikes. Pandl described higher borrowing costs as a potential speed bump but said any decline was unlikely to be steep. He added that a correction could offer a new entry opportunity for investors who missed August's price surge.

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