Unexpected Core CPI Drop Sends Bitcoin Higher
Bitcoin has fallen 10% to 15% below its record highs as investors largely tempered expectations for further rate cuts.
Headline inflation rose faster than expected last month, but the core rate fell on a year-over-year basis, cheering investors.
Policymakers had previously been frustrated by the hold on the core rate.
Bitcoin jumped to $98,500 after the data.
While headline inflation came in faster than expected in December, investors are now buying after an unexpected drop in core inflation on a year-over-year basis.
The closely watched consumer price index rose 0.4% in December, slightly above analysts’ consensus and 0.3% the month before. On a year-over-year basis, CPI rose 2.9%, compared to analysts’ expectations of 2.9% and the previous month’s reading of 2.7%.
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