Columns · Aug 13, 2026
Fed's September Pause Blocked by Sticky Inflation, Crypto Collapse Accelerates with Poolin Bankruptcy
Federal Reserve's September rate pause path remains blocked by stubborn inflation data, while crypto markets face intensified collapse as Poolin files for bankruptcy and Harmony token plunges 40% following unauthorized mint. This deepens yesterday's sell-off wave with new institutional failures.
Inflation Data Blocks Fed Pause, Crypto Collapses Intensify
The Federal Reserve's September rate pause remains improbable as look-ahead inflation data confirms persistent core inflation, contradicting temporary CPI declines in energy and shelter. This directly continues yesterday's macro headwinds while crypto markets accelerate their collapse with Poolin's bankruptcy filing and Harmony token's 40% plunge from an unauthorized mint event, compounding yesterday's Strategy 7,000 BTC sell-off.
Macro: Inflation Sticks, Rates Stay Elevated
- The July CPI report reveals core inflation remains elevated despite energy and meat price drops, undermining Fed pause hopes.
- 10-year Treasury yields hit 2007 highs as auction prices reflect strong bond demand at higher yields, signaling prolonged rate pressure.
- Bank of America notes unemployment falling due to 'too-rich' Americans, but this doesn't offset inflation concerns for the Fed.
Crypto: Bankruptcies and Exploits Multiply
- Pooled mining operator Poolin bankruptcy marks the third major crypto failure this week, erasing $1.2B in mining capacity.
- Harmony's 40% plunge follows unauthorized mint—a repeat of yesterday's vulnerability, now triggering broader market panic.
- Additional failures include Ravencoin's blockchain rollback and $11.8M Triple-A hack, exposing systemic security flaws in the sector.
What to Watch Next
Tomorrow's CPI report will determine if Fed pause hopes revive; crypto investors must monitor for more mining pool failures and regulatory actions against vulnerable DeFi protocols.