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.
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.
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.
XRP continues to drift lower, with its price struggling to stay afloat above $2.15. After…
Sony Electronics Singapore is now accepting payments in USD Coin (USDC) on its online store,…
In the last three months of the year, trading volumes for cryptocurrencies like Bitcoin and…
The Pi Network (PI) has plummeted over 75% in the past three months, collapsing from…
Sonora, California, 30th March 2025, ZEX PR WIRE, As humor continues to shape popular culture,…
Singapore, 30th March 2025, ZEX PR WIRE, Recently, the native token UBC issued by the…