Ethereum

Core

Cardano

Avalanche

The Bureau of Labor Statistics released the eagerly awaited US <a href="https://coingape.com/glossary/consumer-price-index-cpi/" target="_blank" rel="noopener noreferrer nofollow">Consumer Price Index (CPI)</a> data today, which showed that the U.S. inflation rose 3.1% in November. Meanwhile, the market was also anticipating the data to show a further softening of <a href="https://coingape.com/education/what-is-inflation-what-causes-it-and-its-effects-4-examples-of-inflation/" target="_blank" rel="noopener noreferrer nofollow">inflation</a>, reinforcing the belief that the Federal Reserve will maintain interest rates in its year-end meeting.
The global financial market, especially the crypto market, has been <a href="https://coingape.com/crypto-prices-today-bitcoin-pepe-coin-plunge-as-kcs-surges/" target="_blank" rel="noopener noreferrer nofollow">highly volatile this week</a>, due to speculations over U.S. CPI data. Meanwhile, the investors have stayed on the sideline this week and put a pause before making further bets in the volatile market.
<h2 id="us-core-cpi-advances-4-in-november">US Core CPI Advances 4% In November</h2>
The latest Labor Department <a rel="noopener noreferrer nofollow" href="https://www.bls.gov/news.release/cpi.nr0.htm" target="_blank">data</a> revealed a 0.1% advancement in US inflation for November, in line with the market anticipation. The all-items index rose 3.1% annually, which comes in tandem with the market anticipation and down from a 3.2% surge noted in October.
Meanwhile, the Core CPI, excluding food and energy, saw an increase of 0.3%, in line with the market anticipation. Notably, the core inflation on an annual basis witnessed an advancement of 4%, which reflects what the <a href="https://coingape.com/wall-street-sees-us-cpi-inflation-easing-3-1-bitcoin-crypto-market-rebound/" target="_blank" rel="noopener noreferrer nofollow">market was expecting</a> from the November data.
Investors eagerly awaited this economic data for insights into the economy’s trajectory. Despite the Fed’s commitment to a data-driven approach, the declining inflation and signs of labor market cooling have led to market speculation of a potential policy shift.
Meanwhile, following the CPI data release, the US Dollar Index fell 0.39% to 103.329 on Tuesday. Concurrently, the US 10-year Bond Yield decreased by 1.76% to 4.194. It’s worth noting that the CME Fed Watch Tool now <a rel="noopener noreferrer nofollow" href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html" target="_blank">indicates</a> a 98.4% probability of the central bank pausing its rate hike stance at the end of the upcoming Fed’s gathering on December 13.
Also Read: <a href="https://coingape.com/shiba-inu-whale-dumps-12-bln-shib-to-binance-whats-happening/" target="_blank" rel="noopener noreferrer nofollow">Shiba Inu Whale Dumps 12 Bln SHIB To Binance, What’s Happening?</a>
<h2 id="how-are-btc-eth-and-other-cryptos-are-reacting">How are BTC, ETH, and other Cryptos Are Reacting?</h2>
The anticipation and soaring speculations over the U.S. CPI data have forced investors to run for the hill in recent days. The crypto market has noted a bull run since last month, sending the major cryptos like Bitcoin, and Ethereum, among others, to their yearly highs, before a notable decline witnessed in the prices this week.
However, with the inflation cooling, the investors might regain confidence in the crypto market, which in turn could trigger a potential rally in the market. According to experts, institutional investors can also <a href="https://coingape.com/bitcoin-whale-accumulation-rises-ahead-of-us-cpi-data/" target="_blank" rel="noopener noreferrer nofollow">take the downturn opportunity</a> as a “buy the dip” amid the recent price slumps.
As of writing, the global crypto market slipped 0.29% to $1.57 trillion, and its last 24 hours trading volume rose 5.77% to $79.14 billion. In addition, the crypto market fear and greed index stood at 74, suggesting a “greed” sentiment in the market.
Meanwhile, among top cryptos, the <a href="https://coingape.com/price/bitcoin/" target="_blank" rel="noopener noreferrer nofollow">Bitcoin price</a> noted a slump of 0.34% to $41,934.51 after the CPI data. Simultaneously, the <a href="https://coingape.com/price/ethereum/" target="_blank" rel="noopener noreferrer nofollow">Ethereum price</a> also noted a decline of 0.36% to $2,220.28 amid a bearish sentiment hovering over the market. However, the prices seem to be bouncing back from the notable losses marked recently.
In addition, some of the major cryptos like BNB, Solana, Cardano, and Avalanche, among the top 10 cryptos by market cap, have defied the current market trend and stayed in the positive territory.
The <a href="https://coingape.com/price/bnb/" target="_blank" rel="noopener noreferrer nofollow">BNB price</a> was up 2.69% as of writing, while the <a href="https://coingape.com/price/solana/" target="_blank" rel="noopener noreferrer nofollow">Solana price</a> has added over 2% in the last 24 hours. Simultaneously, the <a href="https://coingape.com/price/cardano/" target="_blank" rel="noopener noreferrer nofollow">Cardano price</a> and <a href="https://coingape.com/price/avalanche/" target="_blank" rel="noopener noreferrer nofollow">Avalanche price</a> increased by around 8% and 10%, respectively.
Also Read: <a href="https://coingape.com/elon-musk-faces-legal-heat-as-judge-probes-into-twitter-stock-manipulaton-lawsuit/" target="_blank" rel="noopener noreferrer nofollow">Elon Musk Faces Legal Heat As Judge Probes Into Twitter Stock Manipulation Lawsuit</a>
The post <a href="https://coingape.com/us-cpi-cools-to-3-1-will-btc-eth-other-crypto-prices-regain-momentum/" rel="noopener noreferrer nofollow">US CPI Cools To 3.1%, Will BTC, ETH, &amp; Other Crypto Prices Regain Momentum?</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.

US CPI Cools To 3.1%, Will BTC, ETH, & Other Crypto Prices Regain Momentum?

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