U.S. Inflation Rises, BTC Gains Momentum
On January 15, 2025, the U.S. Bureau of Labor Statistics released December’s inflation data, reporting a rise in the Consumer Price Index (CPI) from 2.7% to 2.9% year-on-year.
On this page
Matching the expectations of most analysts, as outlined in a comparative table published earlier by WSJ’s chief economics correspondent, Nick Timiraos, the data reflected stability in U.S. inflation. However, the cryptocurrency market, seemingly poised for worse, reacted with optimism, rallying after the release.
Bitcoin surged to $99,000, coming close once again to the $100,000 benchmark, with Ethereum surpassing $3,300. The rally comes on the heels of a dramatic dip two days earlier, which saw over $700 million in trading positions liquidated.
Since December, the crypto market has been battered by volatility, fueled by uncertainties surrounding Donald Trump’s inauguration and persistent macroeconomic pressures. Jerome Powell’s recent comments have left little optimism for substantial rate cuts in 2025.
Inflation has inched closer to the Fed’s 2% benchmark, but its downward momentum tapered off in 2023, keeping the target out of reach. While the Fed may have orchestrated a soft landing, the crypto market seems eager for an infusion of liquidity to act as a catalyst for further expansion.
This has driven market participants to pay close attention to macroeconomic signals that could shape Bitcoin’s price dynamics.
Read on: Understanding how macroeconomic factors affect Bitcoin’s price
The content on The Coinomist is for informational purposes only and should not be interpreted as financial advice. While we strive to provide accurate and up-to-date information, we do not guarantee the accuracy, completeness, or reliability of any content. Neither we accept liability for any errors or omissions in the information provided or for any financial losses incurred as a result of relying on this information. Actions based on this content are at your own risk. Always do your own research and consult a professional. See our Terms, Privacy Policy, and Disclaimers for more details.
Articles by this author
