Cooling U.S. inflation lifted cryptocurrency markets on Tuesday, after Bureau of Labor Statistics data showed the Consumer Price Index rose 2.7% in the 12 months through July, below economists’ 2.8% consensus. Prices increased 0.2% from June, while core CPI, which excludes food and energy, advanced 3.1% year-over-year. The softer reading reinforced expectations that the Federal Reserve could begin easing policy as soon as its September meeting. Fed-funds futures tracked by CME FedWatch assigned roughly an 82% probability to a rate cut next month, down modestly from 86% a day earlier but still signaling strong market conviction that borrowing costs have peaked. Risk-asset sentiment improved in the wake of the release. Bitcoin jumped above US$119,000, its highest level in more than two months, while Ethereum climbed past US$4,350. Other major tokens saw smaller moves, though Solana slipped despite the broader rally.