U.S. inflation figures for October matched forecasts, driving Bitcoin (BTC) prices closer to the $90,000 mark.
The Consumer Price Index (CPI) rose by 0.2% in October, aligning with analysts’ expectations and the previous month’s increase of 0.2%. Year-over-year, CPI increased by 2.6%, up from 2.4% in September, meeting the anticipated figure.
Core CPI, which excludes the more volatile food and energy components, also rose by 0.3%, in line with expectations and consistent with August’s reading. The year-over-year core CPI stood at 3.3%, matching both forecasts and the prior month’s figure.
Bitcoin surged to $89,500 following the release of the data, continuing its impressive rally with a nearly 30% gain over the past week.
The Federal Reserve’s easing policy, including a 75 basis point rate cut since September, has helped fuel this surge in Bitcoin prices, supported by broader economic optimism following Donald Trump’s election victory.
According to CME FedWatch, which tracks the likelihood of future Fed rate decisions, the probability of a 25 basis point rate cut in mid-December rose to 69% after the release of the inflation data, up from 60% before the report.
