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US CPI Data Release: Bitcoin Price Rises Above $98,000

The United States Labor Department released the long-awaited December 2024 Consumer Price Index (CPI) and Core CPI data.

Despite concerns about rising inflation and the US Federal Reserve’s decision not to cut interest rates this year, the prices of many volatile currencies continued to rise. The crypto community eagerly anticipated the US CPI data since it’s a significant economic metric that affects financial markets.

Bitcoin Price Responds to US CPI Data

According to the December 2024 US CPI data, inflation has risen to 2.9%, up 0.2% from the 2.7% seen in November. The US Bureau of Labor Statistics most recent report showed that the CPI of 2.9% is the index’s third consecutive increase.

As analysts forecasted, month-over-month inflation remained at 0.3%. Before the announcement of the CPI data, the price of Bitcoin (BTC) was under $97,000.

After the data release, the crypto asset’s price quickly surpassed $98,500, its highest value in over a week. This sharp rise represents an almost $10,000 rebound from Bitcoin’s recent low of $89,200 on Monday, indicating significant interest in the leading cryptocurrency.

Current CoinGecko data indicates that BTC trades at $99,332.

Bitcoin weekly chart. Source: CoinGecko

Federal Reserve’s Rate Decision

The Federal Reserve’s interest rate decisions at the upcoming FOMC meeting on January 28–29 may be influenced by the US CPI inflation, PPI, and jobs data. Hence, many analysts predict that inflationary pressures might make a second Fed interest rate cut less likely.

The report also showed that the inflation rate was 3.3%, less than the projected 3.5%. The core PPI inflation rate, which was 3.5%, was lower than the 3.8% forecast.

According to an industry analyst, the US’s lower-than-expected inflation figures slowed the recent spike in US Treasury bond returns and pushed investors’ interest into more volatile assets. Despite the release of the US CPI data, its impact on the financial markets (crypto and equity) remains to be seen since Trump’s inauguration will also impact these markets.

Jerry Rolon

After working for 7 years as a Internet Marketer, Jerry now aims to explore the journalistic side of Internet. With his impeccable knowledge in this domain, he churns out some of the best news articles from the internet niche. With respect to acedamics, Jerry earned a degree in business from California State University.

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