A new report on US inflation data revealed a significant reduction. According to the most recent Consumer Price Index (CPI) numbers, inflation has slowed, holding constant month after month and rising 3.3% year over year. These data fell barely short of economists' predictions. This report also led to a small BTC price surge.
Following the announcement, Bitcoin's value increased by $1,500 in seconds, demonstrating the digital currency's sensitivity to economic indices. The quick gain reversed previous losses, increasing market optimism about the Federal Reserve's prospective policy easing.
As risk assets such as crypto rose, all eyes are on the Fed's future announcements. Several market participants are speculating on potential interest rate cuts.
Despite the overall favorable news, housing expenses continued to put pressure on the inflation rate. Said indicator was the only major increase in the CPI categories. As the larger economy approaches this key juncture, the Fed's next movements remain a focus.
