The U.S. Consumer Price Index (CPI) for the past year came in at +2.7% (vs. expectations of +2.8%), while Core CPI rose +3.1% (slightly above the +3.0% estimate).
Although Core CPI ticked higher than forecasts, the headline CPI reading being below expectations was enough to fuel optimism in risk markets.
Following the release, Bitcoin (BTC) and Ethereum (ETH) led a broad crypto market rally as traders priced in the possibility of a more dovish stance from the Federal Reserve in upcoming meetings.
Lower-than-expected inflation often eases pressure on the Fed to maintain restrictive monetary policy, increasing risk appetite across both traditional and digital assets.
Market takeaway: If inflation continues to trend near or below forecasts, crypto could maintain its upward momentum in the short term. $BTC $ETH
