#CPIWatch

CPIwatch: Inflation Cools to 2.4%—Fed Pivot Incoming?

Fresh off the wire: January 2026 CPI landed at 2.4% YoY—below the 2.5% consensus, down from December's 2.7%. Core? Steady-ish at around 2.5-3.2% depending on how you slice it. That's the lowest headline since mid-2025, signaling cooling pressures without a hard landing.

Markets reacted fast—Bitcoin popped above seventy-k on rate-cut hopes. Why? Lower inflation = less hawkish Fed. Traders are pricing in a pause (or even cuts) by mid-year if February holds. But watch the details: shelter still sticky, energy dipped—classic "good news, but not great."

Crypto angle: Risk-on flows return when CPI undershoots. If next print (March 11) stays soft, we could see BTC test higher resistance. Flip side? Any rebound above three percent flips sentiment—dollar strengthens, alts bleed.

Bottom line: This isn't victory—it's breathing room. Position for volatility, not euphoria.

Here's a clean chart to pair with it—dark-mode CPI trend overlay on BTC reaction