Bitcoin hits $100,000 mark again following cooler U.S. inflation report
Bitcoin climbed back above $100,000 on Thursday after data released on Wednesday showed that U.S. core inflation rose less than expected last month, increasing the likelihood of further rate cuts by the Federal Reserve.
Overnight, data showed the consumer price index (CPI) rose in line with expectations at an annual rate of 2.9% in December, from November's 2.7%. But core inflation, which excludes food and energy prices, rose by 3.2%, below forecasts for 3.3%.
Investors were particularly encouraged by the latest inflation reading since data released on Tuesday showed that U.S. producer prices increased moderately in December.
Following the U.S. consumer price inflation data, traders are now pricing in two Fed rate reductions in 2025, compared to one following stronger labor market figures last week, according to the CME FedWatch Tool.
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View Details»As of 10:22 am IST, Bitcoin was trading at $99,589, up 2.5%, after hitting an intraday high of $100,781. Meanwhile, Ethereum surged 4.5% to $3,370.
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