U.S. inflation data for October came in line with expectations, providing a boost to Bitcoin (BTC) as it neared the $90,000 mark.
The Consumer Price Index (CPI) for October increased by 0.2%, matching both forecasts and the 0.2% rise from September. Year-over-year, the CPI rose 2.6%, up from 2.4% in the previous month, aligning with economists’ predictions.
Core CPI, which excludes volatile food and energy prices, also rose by 0.3% in October, in line with expectations and maintaining the same pace as August. On a year-over-year basis, core CPI was 3.3%, consistent with the forecast and the September reading.
Bitcoin’s price surged to $89,500 in the wake of the data release, continuing its strong upward momentum with a 30% increase over the past week.
The Federal Reserve’s recent interest rate cuts, totaling 75 basis points since September, have created a more favorable economic climate for risk assets like Bitcoin. The victory of Donald Trump in the U.S. presidential election has further fueled investor optimism, contributing to Bitcoin’s record-breaking rise.
According to CME FedWatch, which tracks the probability of changes to the Federal Reserve’s interest rate policy, the likelihood of an additional 25 basis point rate cut in December increased from 60% to 69% following the CPI report.
