© Reuters
Investing.com – Le was largely benefiting from the positive U.S. CPI surprise on Tuesday, as the cryptocurrency jumped to a high of $17,981 following the release, the highest since Nov. 10.
At the time of writing, Bitcoin is showing a 24-hour gain of more than 5%.
The US CPI for November therefore came out at 7.1%, against 7.3% expected and 7.7% previously. Core CPI, excluding food and energy, also came in below consensus at 6% versus 6.1% expected and 6.3% previously.
This lower-than-expected US inflation increases the likelihood that the Fed will ultimately not go as far as 5% in its current rate hike cycle.
Moreover, these figures could encourage Jerome Powell to give a dovish speech at the Fed meeting tomorrow.
Recall that central bank rate hikes in the face of soaring inflation was a key factor in the fall of bitcoin and cryptocurrencies in general in 2022.
So the prospect of inflation slowing faster than expected implies that central banks, including the Fed, may not have to go as far in their rate-hike cycle as the market thought. hence the positive reaction from BTC and most other cryptocurrencies.
The Ethereum indeed posted a gain of 7.26% to $1339, while the XRP gained 5.85%, and the progressed by 6.66%.
In the top 10, only BNB, Binance’s cryptocurrency, is down, penalized by various concerns about the crypto platform, which temporarily suspended USDC withdrawals on Tuesday.
From a graphical perspective, note that the next hurdle in Bitcoin’s upward path will be the psychological threshold of $18,000, coupled with the November 10 peak at $18,155. On the downside, the $17,600 area is the first potential support for the .
Finally, it will be recalled that after the US CPI on Tuesday, Bitcoin will face the test of the Fed meeting tomorrow, then that of the ECB meeting on Thursday. The next few days could therefore remain lively on cryptocurrencies and global markets in general.