US CPI at 2.7% Fuels Bitcoin Price to Reclaim $100K Mark
- The most recent numbers revealed that inflation rose slightly to 2.7% in November.
- The price of Bitcoin is already witnessing a surge and touched the $100,000 mark.
In order to get a sense of the state of the economy, investors were waiting with bated breath for the US CPI figures. In particular, the most recent numbers revealed that inflation rose slightly to 2.7% in November from 2.6% the previous month.
Nevertheless, the market anticipated this higher number, which has fueled anticipation of another Fed rate drop at next weeks FOMC meeting. The price of Bitcoin is already witnessing a surge and touched the $100,000 mark with a 4.25% gain in the last 24 hours as per data from CMC.
Fed Rate Cut Likely
The US Consumer Price Index rose slightly to 2.7% in November, according to the most recent statistics from the Labor Department. This is a rise from 2.6% in October. Nonetheless, the performance met or exceeded market expectations. After 0.2% in October, the headline inflation rate for the month of November is 0.3%.
However, a separate measure that does not include energy and food costs, the Core Consumer Price Index, arrives at 3.3% for November. It was consistent with market forecasts and stayed the same as Octobers number. Also holding steady at 0.3% monthly is the Core CPI.
Investors seem to have maintained their optimism, as the results aligned with the market projections. It has also increased the likelihood that the Federal Reserve would drop interest rates again at its meeting next week.
But tomorrow, the US will release its PPI inflation statistics, and the market will be watching them closely. The US Federal Reserves future decision about their plans to decrease interest rates will be guided by these statistics. Noteworthy, according to the CME FedWatch Tool, the following weeks FOMC meeting has a 97% probability of a further 25 basis point drop.
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Read more: https://thenewscrypto.com/us-cpi-at-2-7-fuels-bitcoin-price-to-reclaim-100k-mark/
Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
