Bitcoin’s price rapidly escalated by over a thousand dollars after the November Consumer Price Index (CPI) figures from the US revealed significantly lower inflation rates than anticipated.

Price Movements

Previously, expectations were heightened, forecasting a regular CPI of 3.1% and a Core CPI at 3%. However, the actual results revealed a regular CPI at 2.7% and a Core CPI at 2.6%.

🚨 Just In: November US CPI annual inflation rises 2.7%, below expectations of 3.1%. Core CPI inflation increased 2.6% Y/Y, compared to forecasts for a gain of 3.0%. source — Jesse Cohen (@JesseCohenInv) on Twitter

Lower inflation rates may create conditions conducive to the US Federal Reserve reducing interest rates, potentially aligning with Trump’s goal for rates to reach 1% in 2026. As a direct result, Bitcoin initially rebounded from just over $87,000, soaring to $88,500.

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BTCUSD Dec 18. Source: TradingView