US CPI Inflation Data Comes In At 2.7% Signaling BTC & Altcoins Rally

The investors eagerly awaited the US CPI data for cues on the economic health of the nation. Notably, the latest data showed that the inflation inched up to 2.7% in November, up from 2.6% noted in the prior month. However, this increased figure came in line with the market expectations, fueling hopes over another Fed rate cut at the central banks’ next week FOMC gathering. Besides, it also sparked optimism over a potential rally in Bitcoin (BTC) and altcoin prices ahead.

US CPI Inflation Data Inched Up To 2.7% In November

The latest data by the Labor Department showed that the US CPI inched up to 2.7% in November, marking an increase from 2.6% in the prior month. However, the figure came in line with the market expectations. The headline inflation, on a monthly basis, comes in at 0.3% following the 0.2% noted in October.

On the other hand, the Core Consumer Price Index for November, which excludes food and energy prices, comes in at 3.3%. The figure remained unchanged from the October figure and was also in line with the market expectations. On a monthly basis, the Core CPI figure also remains unchanged at 0.3%.

Notably, as the figures were in tandem with the market forecasts, the investors appear to have remained optimistic. It has also fueled optimism over another potential Fed rate cut at the upcoming central bank’s gathering next week.

Will Bitcoin & Altcoin Prices Rally?

The crypto market, which has noted highly volatile trading this week, is also expected to receive a boost from this data. For context, the crypto market started this week with a crash with massive liquidity noted in the market. It appeared that investors have taken a pause, while others booked profit after the robust rally recently, which has sparked the increased volatility this week.

However, the market will keep close track of the upcoming US PPI inflation figures now, scheduled for tomorrow. These data would be crucial in setting the path for the US Federal Reserve’s future decision for their rate cut plans. Notably, the CME FedWatch Tool showed that there is a 97% chance of another 25 basis point cut at the next week’s FOMC.

Meanwhile, following the US CPI release, the US 10-year Bond Yield rose 0.12% to 4.228. On the other hand, the US Dollar Index fell 0.06% to $106.020. Simultaneously, the broader crypto market also noted a surge with Bitcoin and top altcoins recording recovery.

How’s BTC & Altcoins Performing?

Bitcoin price today traded near the $98.6k mark during writing, up about 1%, while its trading volume fell about 17% to $94.3 billion. Notably, the flagship crypto has touched a high of $98,889.80 in the last 24 hours, after touching its ATH of $103,900 last week.

Simultaneously, the top altcoins like Ethereum, XRP, Solana, and others have also recorded notable surges today, indicating increased investors’ confidence. Besides, the crypto market Fear and Greed index was at 73, suggesting a “greed” sentiment in the market.

Considering all these aspects, it appears that the market is gearing up for further rally ahead. Meanwhile, if the US Federal Reserve announces another rate cut next week, Bitcoin and other altcoins may continue its recent rally, potentially hitting new highs in the coming days.

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Rupam Roy

Rupam is a seasoned professional with three years of experience in the financial market, where he has developed a reputation as a meticulous research analyst and insightful journalist. He thrives on exploring the dynamic nuances of the financial landscape. Currently serving as a sub-editor at Coingape, Rupam’s expertise extends beyond conventional boundaries. His role involves breaking stories, analyzing AI-related developments, providing real-time updates on the crypto market, and presenting insightful economic news.
Rupam’s career is characterized by a deep passion for unraveling the complexities of finance and delivering impactful stories that resonate with a diverse audience.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.