The US Consumer Price Index (CPI) for August remained steady, confirming expectations of a 25 basis point rate cut by the Federal Reserve next week. This move triggered a slight decline in crypto prices, particularly Bitcoin. Analysts attribute this drop to a combination of factors, including the expectation of lower borrowing costs and increased risk appetite in the market. 50 basis points rate cuts have been widely anticipated due to recent economic data reports, but the CPI data seems to have shifted expectations towards a smaller 25 basis point cut. While Polymarket data suggests near-unanimous agreement on a 25 basis point cut at the September Fed meeting, the possibility of a larger cut remains in discussion. Bloomberg Intelligence’s Ira Jersey noted that further cuts are expected in October and December, given the CPI data’s impact on market expectations. Bitcoin’s price took a downturn after the CPI release, with the cryptocurrency dropping 0.6%. Other cryptocurrencies also saw a correction, especially Ethereum (ETH), Ripple’s XRP, Dogecoin (DOGE), and Charles Hoskinson’s Cardano (ADA). While Bitcoin fell to $113,516, top-performing cryptos including Ethereum corrected 1.13%, while XRP, DOGE, and ADA saw similar declines.