Bitcoin breaks $89,000, Ether, XRP move higher as US inflation cools in November

Key Takeaways

• Bitcoin surged above $89,000 after CPI data was released.
• Bitcoin recovered from $85,300 in early trading, and Ethereum surged 3% to nearly $3,000.

Bitcoin broke above $89,000 today following the release of November consumer price index (CPI) data that surprisingly showed US inflation easing

According to data from the Bureau of Labor Statistics, the headline CPI rose 2.7% year-over-year, below the 3.1% forecast and slightly above October’s 3% reading. Core CPI, which excludes volatile food and energy prices, increased 2.6% year-over-year, also underperforming expectations of 3%.

Crypto markets and stock futures rose following the report. Bitcoin rebounded from $85,300 in early trading, while Ethereum gained 3% to close at $3,000. Other major crypto assets like XRP and Solana also surged on the news.

However, despite the market rally, uncertainty remains over the Federal Reserve’s next moves, as officials remain divided on interest rate policy and Chair Jerome Powell noted that the figures may not fully reflect underlying inflation trends.