Key Takeaways
- U.S. CPI rose 0.2% in October, meeting expectations.
- Bitcoin reached a record high of $92,900 after CPI data.
- December rate cut probability increased to 69%.
The U.S. Consumer Price Index (CPI) increased by 0.2% in October, meeting economist projections and maintaining the same pace as in September.
Year-over-year, CPI rose to 2.6%, up slightly from 2.4% in September, as reported by the government on Wednesday morning. Core CPI, excluding volatile food and energy prices, also grew by 0.3%, matching both forecasts and its September level.
Bitcoin surges to new highs
Following the release of CPI data, Bitcoin immediately climbed to $89,500, marking a sharp increase in value with nearly a 30% gain over the past week.
Since then, it has now reached an all-time high of $92,900.
Rise amid rate cut expectations
The rise comes amid increased expectations for further Federal Reserve rate cuts and market enthusiasm following Donald Trump’s election victory.
The Fed has already reduced the federal funds rate by 75 basis points since beginning its monetary easing in September, contributing to a liquidity boost that has driven demand for Bitcoin.
Probability of December rate cut rises to 69%
Market expectations for another rate cut in December rose following the inflation report.
CME Group’s FedWatch tool, which tracks rate cut probabilities based on federal funds futures, showed a 69% chance of a 25-basis-point cut at the Federal Reserve’s mid-December meeting, up from 60% before the CPI data was released.
