US inflation cooled to 3.4% in July 2026, according to data from the Bureau of Labor Statistics, though prices remain elevated compared to pre-US-Iran conflict levels. Core inflation, excluding volatile food and energy costs, rose by 0.2%. Asian stock markets showed relief on August 14, 2026, with US pre-market activity indicating a similar pattern. The cryptocurrency market saw no significant reaction, with Bitcoin trading at $63,000 and most assets following a sideways trajectory. Analysts suggest that risk appetite remains low due to inflation still above the Federal Reserve’s 2% target, potentially keeping interest rates unchanged. A possible US-Iran peace deal, mentioned by President Trump, could improve investor sentiment and lead to future rate cuts, potentially benefiting crypto markets.
US inflation numbers cooled slightly in July 2026 to 3.4%. While CPI figures have dropped, prices continue to remain higher than before the US-Iran conflict, with core inflation rising by 0.2%.
Asian stock markets saw relief on August 14, 2026, and US stocks displayed a similar pattern in pre-market hours. Tech stocks, in particular, saw increased price action as investors felt at ease following the inflation dip.
The cryptocurrency market saw no large change, with Bitcoin continuing to trade at $63,000. Most crypto assets followed BTC’s sideways trajectory, as cryptocurrencies remain among the riskiest assets in financial markets.
Risk appetite among investors remains low, according to data. The Federal Reserve will likely keep interest rates unchanged given that inflation is still above its 2% target. Higher rates may keep investors away from high-risk assets.
The cryptocurrency market could pick up steam in coming months. Recent data shows Bitcoin is at its cost of production zone, a level that has historically signaled a bear market bottom. President Trump has said a peace deal between the US and Iran could be finalized soon.
A peace deal may elevate investor sentiment and bring inflation down further. A potential Federal Reserve rate cut could lead to a bullish breakout for the cryptocurrency market.
