Bitcoin and Ethereum Prices Surge After US CPI Report

Bitcoin price rose 2.6% on Wednesday as investors anticipate a faster rate cut in the US. The entire crypto market followed BTC, and experts predict continued volatility.

Bitcoin and Ethereum Prices Surge After US CPI Report

Today, January 15, 2025, the U.S. Bureau of Labor Statistics (BLS) reported that the consumer price index (CPI) rose 0.4% last month.


"The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.4% on a seasonally adjusted basis in December, following a 0.3% gain in November. Over the past 12 months, the all-item index has risen 2.9% before seasonal adjustments," the BLS said.


Higher monthly inflation figures have led the CME FedWatch tool to indicate a 30% chance of a rate cut at the March meeting. Cryptocurrency Market, Expecting Interest Rate Cuts, SawBitcoin


Immediately after the report was published, the rate rose 1.4% to $98,500, eventually reaching a local daily high of $99,400.


This price action confirmed yesterday's bullish doji candle (or pin bar) that appeared when BTC briefly dipped below $90,000. If the trend continues, it should only be a matter of time before the $100,000 level is breached.


Altcoins were quick to follow Bitcoin's lead. Ethereum, the second-largest cryptocurrency by market cap, is up 3% in the last hour to $3,300, while XRP has jumped 2.6% to $2.57.


According to CoinMarketCap, the total cryptocurrency market cap rose 5.6% to $3.33 trillion, while daily trading volume rose 25% to $154 billion.


“Market pricing is likely to react to announcements made by the incoming president, suggesting that current valuations may not fully account for the upcoming news,” the analysts said. “Many of these expected announcements are likely to have long-term implications throughout the year, particularly in areas such as regulatory clarity, banking policy adjustments, and leadership on issues such as the Bitcoin Strategic Reserve.”



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