#ETHRally Bitcoin climbed to $119,000 while Ether surged 8.2% to $4,600 following cooler-than-expected inflation data for July.

Consumer Price Index rose 2.7% year-over-year, below the anticipated 2.8% increase, though still above the Fed's 2% target.

Core CPI excluding food and energy came in at 3.1% annually with shelter costs showing signs of moderation after months of upward pressure.

Federal Reserve officials remain split on rate cuts with two governors calling for immediate reductions at the last meeting.

September rate cut odds stand at 82.5% according to CME FedWatch, down slightly from 86% on Monday following the inflation release.

Lower rates typically benefit risk assets like crypto as investors seek higher yields outside traditional fixed-income securities.

The softer inflation reading provides ammunition for Fed doves pushing for monetary policy easing in upcoming meetings.