The post Bitcoin Smashes $99,000 as Inflation Rises to 2.9% in December appeared on BitcoinEthereumNews.com.

Consumer prices rose as expected in December, a potentially positive sign for risk assets battered by this month’s shifting outlook on Federal Reserve rate cuts. The Consumer Price Index (CPI), which tracks price changes across a broad range of goods and services, rose 2.9% in the 12 months through December, the Bureau of Labor Statistics said Wednesday. “Markets had been losing some faith on the disinflation thesis and the idea of Fed rate cuts,” Grayscale’s Head of Research Zach Pandl told Decrypt. “I think this report puts Fed rate cuts back on the table.” Wednesday’s inflation print was highly anticipated, following data that suggested the U.S. economy was humming along at a stronger-than-expected pace last week. Bitcoin’s price started at $102,000—only to dip below $93,000 after Friday’s blowout jobs reading. The Bitcoin price immediately jumped following Wednesday’s inflation snapshot, increasing 1.9% and briefly surpassing $99,000 in around 30 minutes. Meanwhile, the price of Ethereum and Solana were also bolstered by the fresh inflation figures, rising to $3,300 and $192, respectively. Bitcoin has held onto a significant chunk of its post-election gains, but inflation fears have eaten away at them since the cryptocurrency’s price peaked at $108,000 last month. On a month-to-month basis, consumer prices rose 0.4% in December, slightly outpacing inflation from the previous month. Prior to that, monthly inflation clocked in at 0.2% from July through October. Inflation has come down significantly in the U.S. from a four-decade high of 9.1% in 2022, but it still remains above the Fed’s 2% target. Despite easing financial conditions last year, Fed policymakers have signaled their quest to tame rising prices may not be over yet. Policymakers believe that potential shifts in immigration and trade policy under President-elect Donald Trump could present upside risks to inflation, Fed minutes released last week showed. Taking…

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Filed under: News - @ January 15, 2025 10:26 pm