European Inflation Surprise Rattles Markets, Crypto Sentiment Unshaken

Eurozone inflation unexpectedly ROSE to 2.1% in August, breaching the European Central Bank's target and sending traditional markets into retreat. The FTSE 100 dropped 0.4% while Germany's DAX slid 0.88%, reflecting growing unease about monetary policy tightening.

Cryptocurrencies remained conspicuously absent from the selloff, maintaining their decoupled status as institutional investors increasingly treat digital assets as inflation hedges. The divergence underscores crypto's maturation into a distinct asset class.

ECB policymaker Gediminas Simkus stoked volatility with cryptic hawkish remarks, telling Econostream Media: "I would not be surprised if Santa Claus comes with scissors." Such rhetoric typically fuels demand for decentralized alternatives like Bitcoin and Ethereum.