Despite fears of higher inflation and no interest cuts by the US Federal Reserve this year, cryptocurrency prices soared after the release of the December CPI and Core CPI data, which matched overall expectations. The Consumer Price Index saw a 2.9% increase, while the Core CPI, excluding volatile sectors, came in slightly under estimations at 3.2%. Bitcoin, in particular, jumped to over $98,500, its highest price tag in over a week.
The United States Labor Department announced the highly-anticipated CPI and Core CPI data for December, which actually matched the overall expectations.
The prices of riskier assets like cryptocurrency headed straight north despite the fears of higher inflation and no interest cuts by the US Federal Reserve this year.As the post above demonstrates, the Consumer Price Index for December matched the 2.9% increase, which was the overall expectation. The Core CPI, which excludes more volatile sectors like food and energy, is slightly under the estimations at 3.2%.
Although the increase for December was the largest in eight months and slightly bigger than that for November, cryptocurrency prices reacted with immediate gains. BTC stood at just shy of $97,000 in preparation for the CPI numbers but shot up immediately to over $98,500 after the news broke out. This is the asset’s highest price tag in just over a week.on Monday at $89,200. Perhaps the markets reacted prematurely to the upcoming inflation data, and investors acted ahead of the actual news.
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