US CPI data for December stirred a rally across crypto assets with headline CPI rising to 2.9% from 2.7% in November. The yearly core CPI reading also ticked to 3.2% in December, although it failed to meet expectations of a 3.3% increase.
This is seen as a sign that U.S. inflation is showing signs of cooling down, opening the possibility for the Federal Reserve (Fed) to ease its hawkish stance and potentially resume interest rate cuts.
Thanks to the improving macroeconomic outlook, the crypto market experienced a recovery with green dominating the charts.
Bitcoin quickly rebounded, surpassing the $100,000 mark, marking a remarkable comeback after dropping to $89,000 just three days earlier.