The latest U.S. inflation data for August came as a surprise to the market. The overall Consumer Price Index (CPI) rose 2.9% year-on-year and increased 0.4% month-on-month, exceeding market expectations. The core CPI remains high at over 3%. This unexpectedly hot inflation report adds uncertainty to the Fed's interest rate decision in September.

Previously, the market widely believed that the Fed would lower interest rates by 25 basis points in September, with the probability of this expectation once exceeding 90%. However, the persistence of inflation has clearly cooled expectations for consecutive rate cuts. The Fed is facing a dilemma: on one hand, there is the real pressure of a softening job market and slowing economic growth; on the other hand, there is the difficulty of curbing rising prices. Although a slight rate cut in September may still be possible, the Fed's policy pace will inevitably be more cautious.

For the cryptocurrency market, the impact of this inflation data may bring about short-term fluctuations. After the data was released, digital assets like Bitcoin experienced severe volatility, the US dollar strengthened, and US Treasury yields rose, causing investors to temporarily turn to safe-haven assets. However, in the medium to long term, the trend of interest rate cuts seems difficult to change, and market liquidity is expected to increase again. Even if the Fed only adopts symbolic easing policies, Bitcoin, as a non-yielding asset and liquidity indicator, may still regain capital favor.

In the coming days, the price trend of Bitcoin may continue to be influenced by this inflation data. Investors should closely monitor the speeches of Fed officials and market reactions to better grasp the trends in the cryptocurrency market. At the same time, they should also be wary of the risks posed by global economic uncertainty and participate in investments cautiously.