Bitcoin rose from $96,000 to $98,400 following the release of December’s US consumer inflation data and yesterday’s PPI data.
The Consumer Price Index (CPI) reported a 0.4% monthly increase, aligning with forecasts. The annual inflation rate hit 2.9%, slightly higher than the previous 2.7% but meeting forecasts. Core inflation, excluding food and energy, rose 0.2% month-over-month, matching expectations, but the annual core inflation rate eased to 3.2% from 3.3%.
The market’s response reflected cautious optimism, as the data suggested a moderating inflationary trend, though the annual CPI rise spotlighted lingering price pressures. Bitcoin’s price move mirrors its sensitivity to macroeconomic indicators, particularly those influencing Federal Reserve policy. With inflation data falling within projected ranges, expectations for near-term monetary tightening appear unchanged.
Bitcoin’s price has remained elevated recently, trading between $92,000 and $102,000 after breaking $100,000 for the first time in December.
The Federal Reserve’s next policy meeting will likely provide further direction, with market participants closely monitoring signals regarding rate adjustments in response to evolving economic conditions.
Liam ‘Akiba’ Wright
Also known as “Akiba,” Liam Wright is a reporter, podcast producer, and Editor-in-Chief at CryptoSlate. He believes that decentralized technology has the potential to make widespread positive change.
