This significant downside surprise shows inflation cooling faster than anticipated, despite data distortions from the recent government shutdown (missing October figures and limited MoM changes).
Why It's Bullish for Crypto:$BTC Lower-than-expected inflation reduces pressure on the Fed to keep rates high. It boosts expectations for more rate cuts in 2026 (beyond the recent December 2025 cut). Easier monetary policy typically weakens the dollar, increases liquidity, and drives risk-on sentiment—perfect tailwinds for Bitcoin, Ethereum, and altcoins.
Immediate Market Reaction: Bitcoin jumped ~0.5–1% instantly and is holding around $86,500–$87,500 (ranging $85k–$90k pre-release).
Equities futures (e.g., Nasdaq) turned green.
Broader sentiment on X is overwhelmingly positive—traders calling it a "Christmas gift" for risk assets.
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Key Details from the Release
CPI YoY: 2.7% (vs. 3.1% expected, previous 3.0%)
Core CPI YoY: 2.6% (vs. 3.0% expected)
This significant downside surprise shows inflation cooling faster than anticipated, despite data distortions from the recent government shutdown (missing October figures and limited MoM changes).
Why It's Bullish for Crypto:$BTC
Lower-than-expected inflation reduces pressure on the Fed to keep rates high. It boosts expectations for more rate cuts in 2026 (beyond the recent December 2025 cut).
Easier monetary policy typically weakens the dollar, increases liquidity, and drives risk-on sentiment—perfect tailwinds for Bitcoin, Ethereum, and altcoins.
Immediate Market Reaction:
Bitcoin jumped ~0.5–1% instantly and is holding around $86,500–$87,500 (ranging $85k–$90k pre-release).
Equities futures (e.g., Nasdaq) turned green.
Broader sentiment on X is overwhelmingly positive—traders calling it a "Christmas gift" for risk assets.