The price of bitcoin surpassed $99,000 this morning, boosted by inflation data in the United States. The announcement, which showed a Consumer Price Index (CPI) in line with market expectations, renewed optimism among investors.
The United States Bureau of Labor Statistics reported a monthly increase of 0.4% in the CPI for Decemberwhile annual inflation closed 2024 at 2.9%. Although headline inflation showed an increase, core inflation, which excludes volatile items such as food and energy, stood at 3.2%, slightly below projections of 3.3%.
This combination creates an ambiguous situation for the Federal Reserve (Fed), analysts suggest from the financial newsletter The Kobeissi Letter.
While the headline CPI reaches levels not seen since July 2024, core inflation shows a slight slowdown. Analysts pointed out that this panorama could lead the Fed to adopt a “wait and see” stance at its next meeting.
Bitcoin responds to market optimism
The impact on bitcoin was immediate. In less than 24 hours, The digital currency rebounded to $98,900, an increase of 2.78%. Subsequently, it briefly surpassed the $99,000 mark.
This rebound was supported by lower inflation readings in the Producer Price Index (PPI), as reported by CriptoNoticias, which had already boosted bitcoin back to $97,000 after the abrupt drop below $90,000 at the beginning of the week.
Investors appear hopeful about the possibility of future interest rate cuts. An environment with lower inflationary pressure could encourage the Fed to reduce rates, favoring higher “risk” assets like bitcoin.
Uncertainty and expectations in the market
As bitcoin approaches the psychological threshold of $100,000, Inflation data reflects a mixed outlook for monetary policy in the United States. Although signs of a slowdown in core inflation fuel optimism, the general context is still above the Fed’s 2% target. In this environment, the bitcoin market continues to show its sensitivity to macroeconomic indicators, positioning itself as a thermometer of investor confidence.