Key Points
- Bitcoin’s price spiked to $98,800, following the US CPI data, in line with economists’ expectations.
- Official notes reveal there’s a strong chance for a 25 bps rate cut this month.
Bitcoin’s price recorded a spike earlier close to $99,000, after the US CPI data was released, showing numbers in line with economists’ expectations.
Also, changes are getting higher for an upcoming Fed interest rate cut later this month, according to official notes. 0
Bitcoin Price Surged, Following CPI Data Release
A few minutes ago, Bitcoin’s price surged above $98,800, following the newly released CPI data for November. Earlier, BTC traded below $96,000, ahead of an almost 1% surge in its price, boosted by the economic macro data in the US.
At the moment of writing this article, BTC is trading at around $98,600 following its earlier surge above $98,000.
Bitcoin’s latest price spike came following the release of US CPI data for November which showed a rise in inflation at 2.7% YoY, in line with economists’ expectations.
US CPI Data for November
On November 11, the overall crypto market rebounded and recorded a rise due to the release of the inflation data in the US.
Here is the latest CPI data for November, all in line with what economists were expecting:
- CPI prices rose 0.3% MoM
- CPI prices rose 2.7% YoY
- Core CPI prices rose 0.3% MoM
- Core CPI prices rose 3.3% YoY
US inflation rose for the second consecutive month to 2.7%, boosting expectations for an upcoming interest rate cut later this month.
US Fed Could Cut Interest Rates by 25 BPS in December
The CME Group’s website reveals an 86.1% chance of the US Fed cutting interest rates by 25 bps on their FOMC meeting scheduled to take place on December 18.
The chances for a 50 bps rate cut have dropped to 13.9%, according to the same data.
Also, the Reuters press agency noted yesterday that, according to their polls, there is a 90% chance of an upcoming 25 bps rate cut this month, hinting at a potential pause in January.
Another interest rate cut could be beneficial for Bitcoin’s price, as historical data shows surges for the digital asset following similar decisions.
Bitcoin remains surrounded by optimism after surging above $100,000 earlier this month, despite earlier turmoil in the crypto industry.
