Bitcoin nears $100K, Ethereum hits $3,300 as US CPI data reveals mixed inflation trends

Bitcoin (BTC) surged by $1,500, reaching $98,500, a 2 percent increase in just 24 hours, according to CoinDesk data. This price spike comes in the wake of December’s Consumer Price Index (CPI) release, which showed mixed signals regarding inflation. The US Bureau of Labor Statistics (BLS) reported on January 15, 2025, that the headline CPI increased by 0.4 percent month-on-month in December, slightly surpassing November's 0.3 percent rise. The annual CPI increase stood at 2.9%, matching analyst expectations.

Meanwhile, Core CPI, which excludes volatile food and energy prices, climbed 0.2 percent month-on-month, in line with predictions. However, its annual rate unexpectedly dropped to 3.2 percent, falling short of the anticipated 3.3 percent and November's rate of 3.3 percent.

The Federal Reserve has expressed concerns over persistently high core inflation, even as overall inflation shows signs of decline. Bitcoin, which had mostly stayed below $100,000 in January, capitalised on the dip in inflation, pushing its value closer to the $100,000 psychological mark.

Altcoins followed Bitcoin’s upward momentum. Ethereum, the second-largest cryptocurrency by market capitalisation, rose 3 percent in the past hour, reaching $3,300. XRP also gained 2.6 percent, climbing to $2.57.