Bitcoin and Crypto Markets React to U.S. Inflation Data

Bitcoin surged above $92,500 following the release of U.S. December inflation data that came in largely in line with expectations, before giving back some gains. The Consumer Price Index (CPI) rose 2.7% year over year and 0.3% month over month, matching forecasts. Core CPI, which excludes food and energy, increased 2.6% annually and 0.2% monthly, slightly below expectations.

The inflation report reinforced market confidence that the Federal Reserve is likely to keep interest rates unchanged at its January meeting, with traders pricing in a 95% probability of no rate move. Following the data, U.S. stock futures edged higher, while the 10-year Treasury yield fell.

Bitcoin was trading just under $92,000 before the report, briefly jumped to $92,500, and later settled near $91,800–$94,000, up around 1–2% over 24 hours. Analysts note that Bitcoin is now approaching a key resistance zone between $93,500 and $95,000, which has capped prices for nearly two months.

The broader crypto market also saw gains, with major altcoins such as Ethereum, Solana, XRP, and Avalanche posting modest increases.

Overall, steady inflation data strengthened hopes for a soft economic landing and supported risk assets, including cryptocurrencies, as expectations grow that monetary policy will remain accommodative in the near term.

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