Bitcoin Price Shoots Up Above $98.5K Following Release of US December CPI Data

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The U.S. Labor Department recently unveiled the eagerly awaited Consumer Price Index (CPI) and Core CPI figures for December, and surprisingly enough, these numbers aligned with general predictions.

Regardless of worries about rising inflation and a lack of interest rate reductions from the U.S. Federal Reserve this year, the costs of riskier investments such as cryptocurrencies continued to climb steeply.

U.S. CPI: +2.9% YEAR-OVER-YEAR (EST. +2.9%)

U.S. CORE CPI: +3.2% YEAR-OVER-YEAR (EST. +3.3%)

— *Walter Bloomberg (@DeItaone) January 15, 2025

According to the information in the previous post, the Consumer Price Index in December aligned with the predicted 2.9% rise. As for the Core CPI, it came in just below expectations, sitting at 3.2%, as it excludes sectors like food and energy that can be more unpredictable.

Despite seeing its biggest jump in eight months and a slight overtake from November’s rise, the value of cryptocurrencies immediately surged upward in response.

Initially, Bitcoin was nearly at $97,000, anticipating the release of the CPI figures. However, as soon as the news dropped, it surged past $98,500, marking its highest value in more than a week.

Additionally, Bitcoin has experienced a significant surge of around ten thousand dollars since it hit a low of $89,200 on Monday. It’s possible that the markets overreacted to the anticipation of the upcoming inflation figures, causing investors to make moves before the official data was released.

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2025-01-15 16:48