Inflation in the U.S. has risen unexpectedly in August 2025, exceeding expectations and putting pressure on the Federal Reserve’s plans for rate cuts. While this data may signal future adjustments to interest rates, it hasn’t yet triggered major market shifts in cryptocurrency markets. However, historical trends show a connection between inflation spikes and short-term volatility in cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). 0.4% inflation in August pushed the annual rate to 2.9%. The Federal Reserve remains focused on current policy as it waits for the outcome of next week’s FOMC meeting, where decisions regarding rate cuts will be made. While traditional markets are facing potential interest rate adjustments and heightened volatility due to inflation, cryptocurrencies like BTC and ETH remain stable, with TVL metrics showing steady conditions.