Bitcoin price jumps past $92,000 after CPI report: Traders watch Fed rate cuts
Bitcoin surged past $92,000 after December’s US CPI report showed inflation steady at 2.7% year-over-year. Core inflation also remained under control, easing fears of rising prices from President Trump’s tariffs. The stable data strengthened expectations for potential Federal Reserve interest rate cuts, making Bitcoin and other risk assets more attractive to investors amid global economic uncertainties.
Bitcoin climbs
Bitcoin price (BTC USD) surged on Tuesday, briefly reaching $92,400 before settling just above $92,000. The cryptocurrency gained about 2% in 24 hours. Traders said the rise came after December’s US consumer price index (CPI) report showed inflation remained steady and within expectations.
Inflation stays stable
The Bureau of Labor Statistics said headline CPI inflation stayed at 2.7% year-over-year in December, matching forecasts. Monthly inflation rose 0.3%, also in line with predictions. Core CPI, which excludes food and energy, increased 2.6% annually, slightly below the 2.7% expected. These figures were almost the same as November, showing that prices are not rising faster.
Fed rate cuts
Economists said the stable inflation report strengthens the case for future interest rate cuts by the Federal Reserve. While rates are expected to remain steady at the January Federal Open Market Committee (FOMC) meeting, analysts said the report increases the chances of rate reductions later in the year. Lower rates often encourage investment in risk assets such as Bitcoin.
Effect of President Trump's tariffs
The report also reduced concerns that President Trump’s tariffs could push prices higher. Investors had worried that tariffs might increase inflation, but the data suggests prices are under control. Stable prices make Bitcoin more appealing to traders looking for safe investment options amid global uncertainties.