Crypto Market Sees Potential Liquidity Boost Amid Inflation Miss, Fed Rate Cut Bets Rise

A recent US inflation report showing a lower-than-expected Producer Price Index (PPI) of 2.6% has sent ripples through the crypto market, fueling expectations for aggressive Federal Reserve monetary easing in September. This data shift is impacting market sentiment and prompting speculation around a potential 50 basis point rate cut, with Polymarket odds now hovering around 15.8%. Analysts are divided on this impact, suggesting it may increase liquidity while also prompting cautious positioning across the crypto ecosystem. The report suggests a softer inflationary trend that could give the Federal Reserve more flexibility in its monetary policy decisions.