The Consumer Price Index (CPI) rose by 0.4% compared to the previous month, in line with market predictions, while the annual increase was recorded at 2.9%. This increase was largely driven by a surge in energy prices, which rose by 2.6%, including a 4.4% increase in gasoline prices.

However, core inflation, which excludes food and energy components, rose by 0.2%, slightly slower than the increases in previous months. On an annual basis, core inflation was recorded at 3.2%, the lowest figure since July 2024, indicating that underlying price pressures are beginning to subside.

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US Dollar Declines After CPI Release

After the release of the December 2024 CPI data on January 15, 2025, the US dollar index (DXY) weakened. This DXY decline reflects market expectations that the Federal Reserve may maintain interest rates at current levels or even consider a rate cut shortly. The easing inflation indicates that price pressures have subsided, thus providing room for a more flexible monetary policy.

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Impact on Bitcoin Price

The impact of the DXY weakening was immediately seen in Bitcoin's (BTC) price movement. The BTC price experienced a significant increase of 4.08%. BTC opened at $96,560 and closed at $100,497. This surge occurred amid investor optimism who see Bitcoin as a hedge against looser monetary policies and a weakening US dollar.

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Disclaimer:
This content is intended to provide additional information to readers. Always conduct your own research before making any investments. All buying, selling, and investment activities involving crypto assets are the sole responsibility of the reader.