In October, annual inflation in the United States reached 2.6%, up from 2.4% the previous month. This figure aligned with market expectations of 2.6%.
Following the release of US inflation data, Bitcoin briefly hit $91,000, setting a new all-time high.
Later, the leading cryptocurrency surpassed the $92,000 mark.
The digital gold continued its ascent, exceeding $93,000.
On a monthly basis, the consumer price index rose by 0.2%, matching September’s increase. The consensus forecast had anticipated a 0.2% rise.
Excluding food and energy prices, the index increased by 0.3% from the previous month and by 3.3% compared to October last year. The previous report showed figures of 0.3% and 3.3% respectively. Analysts had expected September’s pace to continue.
Prices for services excluding housing and energy rose by 0.31% after increases of 0.4% in September, 0.33% in August, 0.21% in July, and declines of 0.05% and 0.04% in May-June. The Fed noted the importance of this metric in analyzing the inflation trajectory.
The release of macroeconomic data boosted Bitcoin’s daily growth rate by 0.5%, reaching 3.8%. At the time of writing, the asset’s price approached $88,800. Ethereum’s rate returned to $3,200, reducing daily losses to 1.2%.
“Expectations regarding the Fed’s next interest rate decision are unlikely to depend on today’s report, as the central bank is currently more focused on employment issues,” commented Richard Flynn, Managing Director of Charles Schwab UK.
Nonetheless, in the futures market, traders increased the probability of a 25 basis point rate cut at the December meeting from 58.7% to 72%.
The Labor Department will release the report on new jobs and unemployment for November on December 6.
Previously, Bernstein urged investors to add crypto assets to their portfolios “as soon as possible.” They recommended acquiring a basket of digital assets, including BTC, ETH, SOL, OP, ARB, POL, UNI, AAVE, and LINK.
Former BitMEX CEO Arthur Hayes reiterated his forecast of Bitcoin reaching $1 million.