Cryptocurrency market regains momentum as inflation cools and Fed decision looms

Thursday 13 August 2026 - 19:30

By: Azzat Manal

Cryptocurrency market regains momentum as inflation cools and Fed decision looms

The cryptocurrency market regained some ground on Thursday as easing inflation pressures in the United States improved investor expectations about the Federal Reserve’s next interest-rate decision. The softer inflation outlook provided limited relief to riskier assets, although market participants remained cautious.

Recent economic indicators suggesting that price pressures are continuing to moderate have reduced concerns about further monetary tightening. Investors are increasingly watching for signs that borrowing costs could remain stable, a prospect that could support liquidity and improve sentiment toward higher-risk investments.

Stable interest rates can be beneficial for cryptocurrencies because lower expectations for monetary tightening may reduce pressure on financial markets and encourage investors to seek assets with greater potential returns. However, the latest recovery remains relatively modest.

Bitcoin continued to struggle to break decisively above the $64,000 level and was still heading toward a weekly decline of less than 1%. The limited reaction suggests that investors have not yet gained enough confidence to launch a strong buying wave.

Market participants are expected to closely monitor upcoming U.S. economic data for further clues about the Federal Reserve’s monetary-policy direction. Any significant change in expectations for interest rates could quickly affect risk appetite and trigger renewed volatility across digital assets.

Geopolitical developments in the Middle East are also influencing market sentiment. Tensions surrounding the Strait of Hormuz remain an important concern because disruptions in the strategic waterway could affect global energy supplies and push oil prices higher.

A prolonged increase in oil prices could create renewed inflationary pressure and complicate the decisions of central banks. If policymakers were forced to maintain restrictive monetary conditions for longer, risk-sensitive assets such as cryptocurrencies could face additional pressure.

During Thursday’s trading session, Bitcoin rose 0.72% to around $63,805.25, gaining approximately $456. Ethereum also advanced 0.83% to $1,895.21, while XRP increased 0.46% to approximately $1.0127.

The latest movements highlight the close relationship between digital assets and broader financial conditions. For now, investors remain caught between optimism over easing inflation and concerns about geopolitical risks, energy prices and the future path of U.S. monetary policy.