Following softer-than-expected U.S. inflation numbers, Bitcoin and Ethereum saw significant gains on Tuesday, with traders anticipating the possibility of an upcoming Fed rate cut. The Consumer Price Index (CPI) increased 2.7% in July compared to the previous year, slightly less than economists’ predictions. This positive CPI reading contributed to optimism across financial markets, driving both Bitcoin and Ethereum to their respective highs. The report also revealed a monthly CPI increase of 0.2%, down from June’s 0.3%. While this easing indicates progress towards curbing price pressures, core CPI – excluding food and energy costs – rose 3.1% year-over-year and 0.3% month-over-month in July, signaling that some inflationary momentum remains.