Bitcoin, Ethereum Rise Following Soft US Inflation Data
Bitcoin and Ethereum experienced volatility after U.S. inflation data showed consumer prices rose less than expected, with annual inflation at 2.7% and core inflation at 2.6%, both below forecasts. Both cryptocurrencies spiked pre-market but dropped after the opening bell, with Bitcoin down 1.6% on the week to $88,399, and Ethereum down 6.8% to $2,957, though each gained over 1% on the day. The lower-than-expected inflation boosted rate cut expectations, now at a 26% chance for a cut at the next Federal Reserve meeting. Zach Pandl of Grayscale noted market moves may also be impacted by technical factors, such as year-end tax selling, and legislative developments for digital assets. Lower interest rates and potential progress on crypto regulation could benefit Ethereum in the coming quarter.
