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US Inflation Data Released: Here's Bitcoin's Reaction! - Coin Bulletin
The rise in Bitcoin (BTC) started with the parallel announcement of the US Consumer Price Index (CPI) in line with expectations.
The US December inflation, announced a few minutes ago, came in at 2.9% on an annual basis, in line with expectations of 2.9%. Following the data coming in line with the expectation level, the dollar index (DXY), known to have an inverse correlation with Bitcoin, moved downward while Bitcoin observed a rise close to $1,200.
Bitcoin, which was trading around $97,300 before the announcement of US inflation, rose to $98,500 with the data. The volatility affected the entire cryptocurrency market, and Ethereum (ETH) also reached $3,275.
According to CoinGecko data, while prices are moving with volatility below expectations, Bitcoin is trading at $98,110 and Ethereum at $3,262 as of the time of writing.
In the US, inflation had experienced consecutive increases in June and July of last year but then started to decline again. Since that period, inflation had been gradually decreasing. In parallel, the FED had implemented a total of 75 basis points interest rate cuts in recent months.
The Federal Reserve (FED) is expected to make several more cuts this year, as there is no significant increase in the inflation rate.