The cryptocurrency market surged today after the US Consumer Price Index (CPI) hit 2.7%, a surprising drop below expectations of 2.9%. This unexpected decline triggered a rally in Bitcoin and Ethereum, pushing prices past $119,000 and $4,400 respectively, ultimately boosting the total crypto market value to over $3.94 trillion. The possibility of a Federal Reserve rate cut in September now sits at an impressive 82.4%, according to CME FedWatch. 2025’s CPI data has fueled optimism for investors as it fuels the belief that a reduction in borrowing costs will be implemented by the central bank. After an early dip, market sentiment recovered quickly, with major cryptocurrencies like Bitcoin, Ethereum, XRP, and Solana rallying after the release of the CPI figures.