December inflation data just dropped, and the numbers are painting an interesting picture for crypto markets. The headline CPI came in at 2.7%, matching consensus expectations exactly. However, the real story is in the core CPI reading—it landed at 2.6%, actually beating forecasts that called for 2.7%.

What's particularly notable is that both metrics remained flat compared to the previous month, suggesting inflation may be stabilizing. This stability is critical because the Fed's next move is already locked in: rate cuts are officially off the table at January's Federal Reserve meeting.

For traders and investors monitoring macro conditions, this means the interest rate environment is likely holding steady for now. That's the backdrop shaping everything from risk assets to stablecoin yields in the broader crypto ecosystem.