US CPI inflation rose to 2.7% in November, aligning with market expectations and fueling hopes of a Bitcoin (BTC) and altcoin rally. Investors now anticipate potential rate cuts at the Federal Reserve’s upcoming FOMC meeting.
US CPI Inflation Holds at 2.7%
The Labor Department reported that US CPI inflation edged up to 2.7% in November, compared to 2.6% the previous month. This slight increase matched forecasts, while monthly headline inflation rose to 0.3% from October’s 0.2%. Core CPI, excluding volatile food and energy prices, held steady at 3.3% annually and 0.3% monthly.
These figures, in line with expectations, reinforced optimism about the Fed implementing another 25-basis-point rate cut, with the CME FedWatch Tool showing a 97% likelihood.
BTC and Altcoins Poised for Gains
Following the CPI data, Bitcoin rose 1% to $98.6k, with trading volume dipping 17% to $94.3 billion. The crypto market, previously volatile, saw recovery, with top altcoins like Ethereum, XRP, and Solana also posting gains.
Investors remain optimistic about further upward momentum, particularly if the Federal Reserve confirms a rate cut next week. The crypto Fear and Greed Index at 73 reflects strong market sentiment, suggesting potential for new highs in Bitcoin and altcoin prices in the coming days.
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