Bitcoin moved sharply higher after the release of U.S. December inflation data, briefly climbing to around $92,500 as markets digested figures that largely matched forecasts. Data from the U.S. Bureau of Labor Statistics showed that consumer prices rose 2.7% year over year in December, unchanged from November, while month on month inflation came in at 0.3%. Core inflation, which strips out food and energy costs, increased 2.6% annually and 0.2% on a monthly basis. The data reinforced expectations that inflation pressures remain contained but sticky, supporting the view that monetary policy is likely to stay restrictive in the near term. Bitcoin was trading just below $92,000 ahead of the release before reacting immediately to the report, highlighting how sensitive crypto markets remain to macroeconomic signals tied to U.S. monetary conditions.
Following the initial spike, bitcoin pared part of its gains, settling back near the $91,800 to $92,000 range while remaining up over the past 24 hours. The price action reflected a broader pattern across risk assets, as markets interpreted the inflation print as supportive of stability rather than a catalyst for policy change. U.S. equity index futures edged higher after the data, while government bond yields eased modestly, signaling steady expectations for interest rates. According to market pricing, traders now assign roughly a 95% probability that the Federal Reserve will keep rates unchanged at its January meeting. For bitcoin, the combination of stable inflation and predictable policy expectations has reduced near term uncertainty, allowing prices to respond positively without triggering extreme volatility or aggressive profit taking.
The move underscores bitcoin’s continued alignment with macro driven narratives, particularly those linked to inflation and central bank policy. While the rally lacked follow through beyond the initial reaction, it reinforced the perception of strong demand near current price levels. Analysts note that crypto markets have increasingly treated inflation data as confirmation signals rather than surprises, reacting most strongly when numbers deviate materially from expectations. With consumer prices largely in line, attention is likely to shift back to liquidity conditions, institutional positioning, and upcoming economic releases that could influence rate expectations later in the year. For now, bitcoin’s ability to briefly reclaim levels above $92,000 reflects a market that remains constructive, supported by macro stability rather than speculative excess.
