US Inflation Data Signals Potential for Easing Monetary Policy
The latest U.S. Consumer Price Index (CPI) report showed core inflation rising 2.6% year-over-year in November, significantly below the 3.1% market expectation. This marks the slowest rate of increase since early 2021, providing strong evidence that inflationary pressures are subsiding.
For investors, this data is a critical bullish signal for risk assets, including cryptocurrencies. A lower-than-expected inflation rate increases the probability that the Federal Reserve will have sufficient justification to cut interest rates, which would lower the cost of capital and historically drives investment flows into higher-growth, higher-risk assets like digital assets.