U.S. inflation data for October matched economist expectations, pushing Bitcoin (BTC) back toward the $90,000 mark.
The Consumer Price Index (CPI) increased by 0.2% in October, in line with both forecasts and the 0.2% rise seen in September, according to the government report released Wednesday. On a year-over-year basis, CPI rose 2.6%, also in line with expectations, though it marked an increase from 2.4% in September.
Core CPI, which excludes volatile food and energy prices, climbed 0.3% last month, matching estimates and the previous month’s increase. Year-over-year core CPI stood at 3.3%, which was consistent with expectations and unchanged from September.
Following the release of the inflation data, Bitcoin surged to $89,500, reflecting a nearly 30% gain over the past week.
The U.S. Federal Reserve has implemented a 75-basis-point reduction in the federal funds rate since starting its easing cycle in September. The combination of looser monetary policy across most Western central banks and the pro-crypto stance of President-elect Donald Trump, whose election win came last week, has fueled Bitcoin’s rally to new all-time highs.
According to CME FedWatch, which gauges the probability of future Fed rate moves, the odds of another 25 basis point rate cut in December were just under 60% before today’s inflation data was released. After the print, those odds rose to 69%.
