Bitcoin price (BTC USD) today surges above $92,000 after CPI report shows inflation holds at 2.7%, fueling Fed rate-cut hopes

CPI report impact on Bitcoin (BTC USD): Bitcoin climbed above $92,000 on Tuesday after the latest US inflation data showed that inflation remained steady in December, easing fears that prices could accelerate due to US president Donald Trump’s tariffs and reinforcing expectations for future interest-rate cuts, as per a report.

CPI Report Today Shows Inflation Holds at 2.7%

Data from the Bureau of Labor Statistics showed headline consumer price index (CPI) inflation held at 2.7% year over year in December, matching market expectations, as per a Coingape report. On a monthly basis, inflation rose 0.3%, also in line with forecasts.

CPI Data Meets Expectations as Inflation Stays Under Control

Core CPI came in slightly softer than expected. Core inflation rose 2.6% year over year, below estimates of 2.7%, while monthly core inflation increased 0.25%, compared with expectations of 0.3%, as per the Coingape report. The readings closely mirrored November’s figures, when headline CPI stood at 2.7% and core CPI at 2.6%.


Also read: L3Harris stock soars after US government plans $1 billion investment in rocket motor business — what it means for missile supply

BTC USD Price Today: Inflation Report Boosts Bitcoin Above $92,000

Following the release of the inflation data, Bitcoin rallied, briefly touching $92,400. The cryptocurrency was trading just above $92,000 at the time of writing, up nearly 2% over the past 24 hours.

Inflation Data Strengthens Case for Future Fed Rate Cuts

The steady inflation print was viewed as supportive for Bitcoin and the broader crypto market, as it strengthens the case for further Federal Reserve rate cuts, which tend to benefit risk assets, as per the Coingape report.

Recent Federal Open Market Committee minutes showed that most Fed officials are open to lowering rates if inflation continues to cool as expected.

Also read: JPM stock today jumps even after JPMorgan earnings miss — here’s what investors are focusing on

Inflation Data Eases Fears Over Trump Tariff Impact

The CPI report also eased concerns about the potential inflationary impact of Trump’s tariffs. While New York Fed President John Williams had previously said November’s data may have been distorted by the government shutdown, the December figures suggest inflation is not trending higher, as per the Coingape report.

Will the Fed Cut Rates

Despite the market reaction, the Federal Reserve is still expected to keep interest rates unchanged in the near term. CME FedWatch data indicates a 95% probability that rates will remain steady at the January FOMC meeting, with just a 5% chance of a 25-basis-point cut after three rate reductions last year, as per the Coingape report.

FAQs

What did the CPI report suggest about Trump’s tariffs?
It showed inflation isn’t trending higher despite tariff concerns.

Is the Fed expected to cut rates soon after this CPI report?
The Fed is still expected to hold rates steady at the January meeting.