Bitcoin Surges to $100K Amid Slight Inflation Increase to 2.7% in November
The latest data shows that U.S. inflation edged up to 2.7% in November, compared to 2.6% in October. Despite this slight increase, market expectations were met, fueling optimism for a potential Federal Reserve rate cut during next week’s FOMC meeting.
Bitcoin Rallies on Inflation Data
Bitcoin has responded positively to the economic news, reaching the $100,000 milestone with a 4.25% gain in the past 24 hours, according to CoinMarketCap data. This surge underscores investor confidence amid speculation of easing monetary policy.
Inflation and Market Expectations
The U.S. Consumer Price Index (CPI) rose to 2.7% year-over-year in November, up from 2.6% in October, while monthly headline inflation climbed to 0.3%, compared to 0.2% in the prior month. Core CPI, which excludes volatile energy and food prices, remained steady at 3.3% annually and 0.3% monthly, aligning with market forecasts.
These figures have strengthened investor sentiment, as they suggest the Federal Reserve is likely to lower interest rates further at its upcoming meeting. According to the CME FedWatch Tool, there is a 97% probability of a 25 basis point rate cut next week.
Upcoming PPI Data to Influence Fed Decision
Tomorrow, the U.S. will release its Producer Price Index (PPI) inflation data, which will be closely monitored by the market. These figures are expected to guide the Federal Reserve’s decision on interest rates.
The combination of anticipated monetary easing and Bitcoin’s strong performance highlights a critical intersection of economic trends and crypto market activity as the year nears its end.
