Key Highlights:
- U.S. October CPI matches expectations, fueling Bitcoin’s surge past $89,000.
- Chances for a Fed rate cut in December spike to 69%, stoking further crypto optimism.
Paradisers! Is Bitcoin about to make its next moonshot? As the U.S. released its October CPI data right on target, crypto enthusiasts watched BTC break above $89,000 with bated breath. The big question: Is six figures just around the corner?
U.S. Inflation Data Hits the Bullseye
According to a government report that hit newsstands on Wednesday, the Consumer Price Index (CPI) rose by 0.2% in October, perfectly aligned with economist forecasts and mirroring September’s modest climb.
On a year-over-year basis, the CPI increased by 2.6%, up from September’s 2.4%. Not to be outdone, the core CPI, stripping out those pesky, volatile food and energy prices, also hit the sweet spot, rising 0.3% in October and maintaining a 3.3% annual increase.
Bitcoin’s Meteoric Response
The moment those CPI figures dropped, Bitcoin didn’t just tiptoe upwards; it leaped, hitting $89,500 like it was late for an appointment with destiny. This adds to an impressive 30% rally over the past week, fueled by looser monetary policies and crypto’s new best friend, President Donald Trump, who clinched victory last week with promises that had digital assets dancing.
The Fed’s Next Move and the Bitcoin Boost
The U.S. Federal Reserve has already chopped down interest rates by 75 basis points since its September easing spree.
But here’s the kicker: the CME FedWatch Tool, which takes the pulse of short-term interest rate predictions, had the odds of another 25 basis point cut in mid-December at just under 60% before the CPI data. Post-release? That jumped to a thrilling 69%, suggesting the Fed might be all-in on keeping the liquidity taps open.
Why This Matters for Bitcoin
A potential December rate cut could unleash even more liquidity into the market, a clear signal for investors to flock to risk assets like Bitcoin. With inflation stabilizing and the Federal Reserve expected to stay accommodating, BTC’s run to $100K may be less of an “if” and more of a “when.”
