Bitcoin (BTC) price has seen a strong surge in recent hours following the release of US inflation data that met expectations. The leading cryptocurrency briefly climbed above $93,000 after the announcement, gaining approximately 2% in the last 24 hours.
According to data from the U.S. Department of Labor, the consumer price index (CPI) rose 2.7% year-on-year in December. This rate was the same as in November and in line with market expectations. Core inflation, which excludes food and energy prices, was reported at 2.6% year-on-year. On a monthly basis, headline inflation increased by 0.3%, while core inflation rose by 0.2%.
Bitcoin, which was trading below $92,000 prior to the data release, surged rapidly to $93,500 after the announcement. During the same period, US stock futures rose by approximately 0.3%, while the 10-year US Treasury yield fell from 4.19% to 4.175%.
Market expectations are leaning towards the Fed keeping interest rates unchanged at its January meeting. According to CME FedWatch Tool data, investors are pricing in a 95% probability of the Fed not changing interest rates.
On the other hand, analyst il Capo of Crypto, commenting on the cryptocurrency markets, drew attention to Bitcoin’s upward momentum, stating, “BTC appears ready to test the $95,000 level. Privacy-focused cryptocurrencies continue to outperform the market.”
*This is not investment advice.