The U.S. CPI inflation came in well below expectations, providing a bullish outlook for Bitcoin and the broader crypto market. BTC sharply reacted to the data release, which could pave the way for more rate cuts from the Federal Reserve.
U.S. CPI Inflation Falls To 2.7%, Bitcoin Price Rises
Bureau of Labor Statistics (BLS) data show that the CPI fell to 2.7% year-over-year (YoY) in November, well below estimates of 3% and the 3.1% recorded in September. Core CPI came in at 2.6%, also way below estimates of 3% and the 3.0% recorded in October. This marks the lowest level for the core CPI since March 2021.
The Bitcoin price sharply rose on the back of the U.S. inflation data release, climbing above $88,000 from an intraday low of around $86,000. The flagship crypto is now up almost 3% on the day and looking to hit the $89,000 psychological level.
Source: Yahoo Finance; Bitcoin Daily Chart
The macro data marks a positive for BTC and the broader crypto market, as it indicates that inflation in the U.S. is cooling despite concerns among Fed officials who are advocating against further rate cuts. Notably, Fed Governor Chris Waller stated that he doesn’t expect inflation to reaccelerate, which is why he believes the focus should be on the job market, which he claimed is calling for more cuts.
The U.S. CPI inflation data release follows the release of the U.S. jobs data, which dropped earlier this week. The unemployment rate came in at 4.6%, the highest since 2021, indicating that the labor market continues to weaken. These macro data make a case for a January rate cut. However, crypto traders are still betting on the Fed to hold rates steady next month.
Breaking: U.S. CPI Inflation Comes In Below Expectations, Bitcoin Price Climbs
