The US Consumer Price Index (CPI) for August rose by 2.9% year-on-year, aligning with market expectations and reinforcing predictions of a Federal Reserve rate cut next week. A 25 basis point reduction is widely anticipated, leading to a slight dip in cryptocurrency prices. Bitcoin fell by 0.6% following the CPI release, with other major cryptocurrencies such as Ethereum, XRP, Dogecoin, and Cardano also experiencing declines. The US Dollar Index decreased by over 0.3% as confidence in the USD weakened. Analysts, including Bloomberg's Ira Jersey, suggest that additional rate cuts could occur in October and December, potentially increasing liquidity and encouraging investments in riskier assets like cryptocurrencies.