Crypto analysts say July CPI data could trigger massive sell-off originally appeared on TheStreet.

The U.S. inflation picture delivered a split verdict in July, giving both crypto bulls and bears something to chew on.

Headline Consumer Price Index (CPI) rose 2.7% year-over-year, coming in slightly cooler than the 2.8% economists had expected.

But Core CPI — which strips out volatile food and energy prices and is closely watched by the Federal Reserve — climbed 3.1%, edging above the 3.0% forecast and suggesting that underlying inflation pressures remain sticky.

The print landed at a sensitive moment for markets, with traders looking for clarity on whether the Fed will move ahead with a long-awaited rate cut in September. Lower interest rates tend to benefit risk assets like Bitcoin, which thrive in a looser monetary environment. Instead, the data muddies the waters, making the Fed’s next step harder to call.

15 mins to go until CPI! https://t.co/2zDmXGrfSb

— Ali (@ali_charts) August 12, 2025

Crypto analysts suggested earlier in the day that a reading at or below 2.8% would provide upwards acceleration, and anything above 3% could lead to a selling reaction.

"If CPI comes in cooler, a rate cut is confirmed for September," said crypto Key Opinion Leader Fefe Demeny.

Another leading crypto analyst, Benjamin Cowen, called 2.9% "somewhat neutral," but warns that anything higher would provoke a negative reaction within the markets.

If headline inflation comes in at 2.8% or less tomorrow, it should be bullish for the markets.

2.9% may be somewhat neutral

Probably anything over 3% gets a negative reaction.

— Benjamin Cowen (@intocryptoverse) August 12, 2025

Should CPI be hotter than expected, analysts of crypto derivative exchange Bitunix say they can envision a scenario where Bitcoin can fall below $117,000, which would present a strong case for deeper correction territory.

Join the discussion with Fefe Demeny on Roundtable here.

Whereas, analysts of the cryptocurrency trading platform Bitfinex say that Bitcoin has bounced back from its August low of $112,000 to the $115,800 range floor, thanks to $769 million in ETF inflows over three sessions. 

The market is still "warm but not overheated" since 70% of short-term holders are still making money, and taking profits is slowing down.

Before the data was released, Bitcoin was trading at $118,468.96, down 1.76% in the past 24 hours, with trading volume slipping 11.97% over the same period.

Soon after CPI data was released, Bitcoin saw a 1% uptick in price, now trading at $119,110.83, as per Kraken.

Crypto analysts say July CPI data could trigger massive sell-off first appeared on TheStreet on Aug 12, 2025

This story was originally reported by TheStreet on Aug 12, 2025, where it first appeared.