The US core consumer price index (CPI) in December was 2.6% compared to the same month last year. This data is better than market expectations of 2.7% and unchanged from the number recorded in the previous month. In immediate reaction, the price of Bitcoin (BTC) rose, accumulating a 1.6% increase over the past 24 hours.
The following graph is Bitcoin price fluctuation Within the above period:
the fact that Lower-than-expected inflation is interpreted positively by investors. When the CPI is suppressed, there is less pressure on the Federal Reserve to maintain restrictive monetary policy.
If the market expects the Fed to cut interest rates or pause rate hikes, the opportunity cost of holding dollars decreases. As explained in the education section of Cryptopedia – CriptoNoticias, this They typically encourage capital to enter assets with limited supply, such as Bitcoin.benefiting from an environment of increased liquidity and moderate dollar strength.