Bitcoin, Ethereum post mild gains as soft core CPI improves sentiment
- Bitcoin climbs above $92,000 on Tuesday as a soft core CPI reading for December improves market sentiment.
- Ethereum also posts slight gains despite intense retail distribution.
- The S&P 500 and major stock indexes edged slightly lower after the CPI release.
Bitcoin (BTC), Ethereum (ETH) and the global cryptocurrency market saw a mild uptick on Tuesday following the release of the US Consumer Price Index (CPI) data for December.
The US headline CPI came in line with expectations and unchanged from its November reading, rising 0.3% MoM and 2.7% YoY in December, according to the Bureau of Labor Statistics (BLS).
The core CPI, which excludes energy and food prices, rose 0.2% MoM, below market expectations of 0.3%. On the yearly timeframe, core inflation remained unchanged at 2.6%, below forecasts of 2.7%.
The soft core inflation reading tilts the Federal Reserve (Fed) toward maintaining its cautious monetary policy-easing path. Following the CPI release, President Donald Trump again urged Fed Chair Jerome Powell to cut interest rates "meaningfully."
The crypto market saw signs of improvement as market participants responded positively to the soft core CPI. Bitcoin posted a 1.8% gain over the past 24 hours at the time of publication as it edged toward $93,000 for the first time in nearly a week.
Ethereum also rose toward $3,160, continuing to hold above the $3,000 key level despite intense retail distribution.
The move triggered over $176 million in liquidations over the past 24 hours, driven by $104 million in short liquidations, per Coinglass data.
On the contrary, the S&P 500 and the Nasdaq Composite are both down 0.2% and 0.3%, respectively, at the time of publication on Tuesday, after opening slightly higher.
Author
Michael Ebiekutan
FXStreet
With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addi
