Impact of Lower-than-Expected US Core CPI on Crypto (Jan 16, 2026)

Dec 2025 CPI report (released Jan 13):
Core CPI MoM +0.2% (exp. +0.3%), YoY +2.6% (exp. +2.7%).
Headline CPI YoY +2.7% (as expected).

Why bullish for crypto:
Softer core inflation → lower Fed rate-hike risk → higher chance of continued cuts in 2026 → increased liquidity → positive for risk assets like BTC/ETH.

Market reaction:
Immediate: BTC spiked ~1.5–2% to ~$92,500 right after release.
Follow-through: Extended rally → reached $95k–$96k+ by Jan 16 (multi-week high).
Broader market: Total crypto cap +~2% in 24h post-data; altcoins (ETH, XRP, SOL) also gained modestly.
Drivers: Renewed spot ETF inflows, short squeezes, equities at record highs, slight USD weakness.

Current status (Jan 16):
BTC consolidating around $95,400–$96,000 after the pump.
Sentiment improved: macro “soft landing” narrative supports BTC as risk-on asset.

Key takeaway:
Lower core CPI acted as clear bullish catalyst → short-term rally + better liquidity outlook.
Mid-term structure remains positive if Fed stays dovish, though watch upcoming jobs data & regulatory news for volatility.

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