The US inflation print for December 2024 rose to 2.9% year on year compared to 2.7% in November, as per reports by the US Bureau of Labor Statistics published earlier today.
According to the official report, higher prices for energy-related commodities caused US consumer prices to rise somewhat more than anticipated in December. But the data stayed in tandem with market expectations for the year-on-year rise.
The price of Bitcoin rose soon after the numbers landed, reaching the $99K mark. At the press time, the OG-cryptocurrency is trading at $98,959.07, up 2.18% as compared to the same time last day.
US Inflation Mostly in Line With Market Expectations
The Bureau of Labor Statistics of the Labor Department said on Wednesday that the consumer price index increased by 0.4% in December, following a 0.3% increase in November. The CPI grew 2.9% for the 12 months ending December period and 2.7% in November.
A Reuters poll forecasted month-on-month inflation to be rise 0.3% in December, while the year-on-year figure was expected climb to 2.9% from 2.7% in November.
Also Read: Federal Reserve’s Ex-Chairman Says BTC’s Value Can Never Be Negative
Fed Rate Cuts: What to Expect Now?
The slight above than expected rise in month-on-month inflation print suggests that the goal that the US Fed has kept to keep the core inflation under the 2% mark might still take time.
This can force slower rate cuts in the coming year, making the US economy struggle a little. However, with the year-on-year numbers being in tandem with market expectations, it is likely that the Fed might ignore the slight above than expected rise to eventually lower the rates further.
Additionally, in order to boost the economy, the incoming administration of Donald Trump has also promised tax cuts. This can further help make the US economy resilient.
Will Bitcoin Rise in Future?
Usually crypto investors keep a close eye on inflation prints given that the data point often helps access the trajectory of Bitcoin.
Rate cuts usually put pressure on the yields on government assets and bonds, making riskier assets more worthy and alluring. Therefore faster rate cuts can sometimes give the prices of Bitcoin a necessary rise.
With this in mind, the present Fear & Greed Index for BTC stands at 70 (Greed), with the sentiments largely bullish. Over the past 30 days, Bitcoin’s price volatility was 3.53%, with 15 out of 30 (50%) days being green.
Additional market parameters suggest that there is a broad bullish feeling toward the price trajectory of Bitcoin, with 27 technical analysis indicators indicating optimistic signs and one indicating bearish indications.
Also Read: Exclusive: BTC To Hit $1M Between 2060-2080 Due to Inflation Alone, Says Author Ignatenko