While headline inflation came faster than expected in December, investors are currently in buy mode following the unexpected decline in the core rate year-on-year.
Monitor closely Consumer price index The Consumer Price Index (CPI) rose 0.4% in December, slightly above analysts’ expectations and 0.3% in the previous month. On an annual basis, the CPI rose by 2.9%, compared to analysts’ expectations of 2.9% and the previous month’s reading of 2.7%.
The core CPI, which excludes food and energy costs, rose 0.2% in December, versus expectations of 0.2% and the previous month’s figure of 0.3%. However, core CPI fell year-on-year to 3.2% versus expectations of 3.3% and the November rate of 3.3%.
The pace of core inflation is of great importance to policymakers, who have expressed at least modest frustration with its persistence above 3% as headline inflation declines at a much faster pace.
Bitcoin price (Bitcoin) rose about $1,500 in the minutes following the report to $98,500 after the report, up 2% over the past 24 hours, CoinDesk data shows.
In traditional markets, US stock index futures rose about 0.5% after the data, while bond yields and the dollar fell sharply.
Cryptocurrency markets traded range-bound during January at whims Macroeconomic data and Monetary policy forecasts Amid a strong economy and fears of sticky inflation. Bitcoin has mostly consolidated below $100,000 since the Fed presidency Jerome Powell’s tough statements In December. This, combined with a series of stronger-than-expected economic and inflationary data, has led market participants to erase almost all expectations for interest rate cuts this year.
The last one is on Tuesday Producer price index The Producer Price Index (PPI) for December showed lower-than-expected inflation readings, supporting BTC’s recovery to $97,000 after a surprise sell-off below $90,000 earlier in the week.
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