While the U.S. CPI report brought optimism to the market, rising inflation spoiled the picture, and the altcoin market quickly followed suit.

Bitcoin experienced a 1.5% correction after the CPI report. The core inflation rate rose 0.3%, exceeding economic forecasts. DOGS became the third-largest asset by holder count, behind USDT and Ether.

Bitcoin responded to the inflation surge, falling to $55,591. The U.S. Consumer Price Index rose 0.2% in August, and the year-over-year inflation was up by 2.5%. The core inflation rate matched forecasts at 3.2%. Analysts expect the Federal Reserve to cut its lending rate by 25 basis points next week. Bitcoin prices rebounded above $58,000, with analysts noting a correlation between inflation changes and Bitcoin price movements.

The altcoin market also saw declines, with Solana (SOL), Toncoin (TON), and Dogecoin (DOGE) dropping 2%-3%. However, the overall market capitalization remained stable. Meanwhile, the Telegram-native memecoin DOGS saw 17 million tokens claimed and over 5 million wallets holding DOGS on the TON blockchain, making it the third-largest asset by holder count.