Bitcoin regains $100K after November US CPI report


Bitcoin returned to $100K after November's US inflation statistics met predictions.

Due to stable inflation, market investors anticipate the Fed to decrease rates by 25bps.

The crypto market rose over 4%, led by altcoins like XRP, SOL, and ADA.

Bitcoin (BTC) rose beyond $100K on Wednesday as the US November Consumer Price Index (CPI) met estimates at 2.7%. Crypto investors responded promptly to the data, since market players expect the Fed to drop rates by 25 bps next week.

Bitcoin passes $100K as CPI data boosts crypto market.
Market predictions were met as November US CPI climbed to 2.7% YoY from 2.6% in October. The November CPI reached 0.3%, up from 0.2%. Notably, core CPI remained at 3.3% after rising in October.

The CPI statistics met expectations as market investors predict a 25bps Fed rate decrease next week. As investors choose higher-yield investments, a Fed rate drop might stimulate demand for risk assets like cryptocurrency.

Bitcoin rose 6% past $100K on Wednesday after the CPI data. almost the previous 24 hours, the crypto market rose almost 4%.

XRP, Solana (SOL), and Cardano (ADA) are topping the cryptocurrency rise with gains of 23%, 11%, and 16%, respectively.

Other industries reacted favorably to inflation statistics. Meme currencies including Dogecoin (DOGE), Shiba Inu (SHIB), dogwifhat (WIF), BONK, and FLOKI gained double-digits.

Top artificial intelligence tokens rose over 10%, while the sector rose over 7%.

Despite the initial crypto bounce after the CPI statistics, Unity Wallet COO James Toledano advised investors to be cautious with Bitcoin due to its turbulent past.

"Bitcoin has a history of extreme volatility, and that calls for caution because corrections always come," Toledano said. "The pendulum swings both ways and for new entrants to Bitcoin, I'd caution going all-in when the price is at an all time six figure high, especially when the latest sugar hit is largely based on sentiment towards the incoming US administration."

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