THORChain (RUNE) Leads Crypto Market Rally as US Inflation Eases, Sparking Rate Cut Hopes

Annual consumer prices in the U.S. eased in July, fueling optimism that the Federal Reserve may initiate interest rate cuts at its upcoming September meeting.

Consumer prices in the United States rose at a slower annual pace in July, boosting optimism that the Federal Reserve may begin cutting interest rates at its upcoming September meeting.

The easing in inflation provided a backdrop for a strong session in both cryptocurrencies and U.S. equities on Wednesday. Among crypto tokens, THORChain (RUNE) led the charge with a 12% gain on August 14.

The token rose to $8.03 during the day, pulling further away from a recent low of $4.78, hit earlier in August.

Toncoin (TON), Notcoin (NOT), and Celestia (TIA) also posted strong gains, with each token rising over 10% during the day.

Toncoin reached $7.27, its highest level since July 20, and up over 51% from its lowest point earlier in the month.

Notcoin, a popular tap-to-earn token, climbed to $0.0128, while Celestia surged to $6.60.

Major cryptocurrencies also saw positive movements, with Bitcoin (BTC) trading above $24,000, Ethereum (ETH) changing hands at $1,900, and Cardano (ADA) rising to $0.46.

The headline Consumer Price Index (CPI) decelerated to 2.9% in July, while the core CPI fell slightly to 3.2% from 3.3% in June, the Bureau of Labor Statistics said.

Both the headline and core CPI rose by 0.2% on a month-over-month basis.

The easing in inflation followed weaker-than-expected producer price index data, which had already spurred a strong rebound in U.S. stocks.

The Dow Jones and Nasdaq 100 indices each gained over 400 points, while the U.S. dollar index fell.

The latest inflation figures strengthened the case for the Federal Reserve to consider cutting interest rates at its next meeting.

In an interview with Bloomberg, David Rubenstein, the billionaire founder of Carlyle, said he expects the Fed to cut rates, and that the reduction could be 0.25%.

“I think they will cut. I don't know how much. Maybe 25 basis points, especially given where we are in the U.S. election period,” Rubenstein told Bloomberg.

A potential rate cut could be beneficial for cryptocurrencies like Celestia, Notcoin, and Toncoin, as lower rates usually lead to a shift in investor appetite toward riskier assets.

This pattern was observed during the Covid pandemic, when digital assets saw substantial inflows.

Toncoin and Notcoin also benefited from the TON Blockchain’s launch of a new $40 million venture fund.

The TON Blockchain, which is supported by Telegram, said the fund will be used to bolster the Toncoin ecosystem by attracting new developers, including those looking to shift from blockchains like Ethereum and Solana.

The network currently has nearly $600 million locked in its decentralized finance (DeFi) ecosystem, with key projects like STON.fi, DeDust, and Tonstakers leading the platform’s growth.

Investors also appeared to be taking advantage of a dip in Celestia’s price, which had dropped to around $4 earlier in August.

No specific news was reported about the network, which could have otherwise sparked the buying interest in Celestia.

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