Inflation Uncertainty Weighs on Fed, Crypto Bulls Anticipate Liquidity Surge

Hotter-than-expected U.S. wholesale inflation in July, with the Producer Price Index rising 0.9%. Its biggest monthly gain in over three years—has dampened hopes for a September Fed rate cut.

Bitcoin fell 4.2% to $118,200 and Ethereum slipped 3% to $4,570 as traders reduced bets on near-term policy easing. Analysts expect seasonal weakness in September but see rising global liquidity as a potential catalyst for a Q4 crypto rebound. Kraken’s economist Thomas Perfumo noted that persistent inflation highlights the appeal of fixed-supply assets like Bitcoin, which are structurally positioned to preserve and grow value.

Clever Robot News Desk 17^th August 2025