This price spike comes in the wake of December's Consumer Price Index (CPI) release, which showed mixed signals regarding inflation.
Cryptocurrency prices rose on Sunday evening as Bitcoin (BTC) approached the $100,000 mark again, following mixed signals from December’s Consumer Price Index (CPI) report.
Bitcoin rose by $1,500 in 24 hours, reaching $98,500, according to CoinDesk data. Meanwhile, Ethereum (ETH), the second-largest cryptocurrency by market capitalisation, rose 3 percent in the past hour, reaching $3,300.
The price spike comes after the December CPI figures, released by the US Bureau of Labor Statistics (BLS) on January 15, 2025. The headline CPI increased by 0.4 percent month-on-month, slightly higher than November’s 0.3 percent rise. The annual CPI increase was 2.9%, meeting analyst expectations.
On the other hand, Core CPI, which excludes volatile food and energy prices, climbed 0.2 percent month-on-month, as predicted. However, its annual rate unexpectedly dropped to 3.2 percent, falling short of the anticipated 3.3 percent and November’s rate of 3.3 percent.
The Federal Reserve has expressed concerns over persistently high core inflation, despite signs of decline in overall inflation. Bitcoin, which had largely remained below $100,000 in January, capitalised on the dip in inflation, pushing its value closer to the $100,000 psychological mark.
Altcoins also followed Bitcoin’s upward momentum. XRP gained 2.6 percent, climbing to $2.57.
The total cryptocurrency market capitalisation saw a 5.6 percent increase, reaching $3.33 trillion. Daily trading volume also surged by 25 percent, totaling $154 billion, according to CoinMarketCap data.
Earlier this week, Bitcoin had briefly rebounded to $97,000 following a cooler-than-expected Producer Price Index (PPI) report. However, hawkish remarks from Federal Reserve Chair Jerome Powell and strong economic data have kept market participants cautious, dampening expectations for rate cuts in 2025.
