U.S. Inflation Data Aligns with Predictions; Bitcoin Surpasses $89K
Recent U.S. inflation rates show conformity with forecasts, propelling Bitcoin prices over $89,000.
U.S. inflation data for October exactly met economist predictions, pushing Bitcoin prices close to $90,000.
The Consumer Price Index (CPI) increased by 0.2% in October, matching predictions and the same rise noted in September. Year-over-year, the CPI increased by 2.6%, also aligning with expectations, albeit an increase from 2.4% in September.
Core CPI, which excludes volatile food and energy prices, also rose 0.3% in October against estimates of 0.3%, remaining consistent with 0.3% in August. Year-over-year core CPI was noted at 3.3%, as anticipated.
Following the data release, Bitcoin (BTC) prices surged to $89,500, marking an increase of nearly 30% over the past week.
The U.S. Federal Reserve previously lowered the federal funds rate by 75 basis points, initiating an easing cycle in September. This shift in monetary policy, along with a recent crypto-friendly election, has fueled Bitcoin's surge to new heights.
According to CME FedWatch, the likelihood of an additional 25 basis point rate cut in mid-December climbed to 69% following today's economic indicators.
