According to the most recent consumer price index (CPI) data released by the U.S. Bureau of Labor Statistics, inflation rose 7.1% in November on a year-over-year basis. This is lower than analysts' forecast of 7.3%.
The price of Bitcoin briefly spiked to as much as $18,106 on the Bitstamp exchange due to cooler-than-expected CPI data.
Bitcoin and crypto soared in tandem with futures tracking U.S. equities. The S&P 500 index is on track to add 3% at the market open following the most recent CPI data. Nasdaq futures are up by more than 4%. Cryptocurrency-related stocks are finally seeing some love from traders, with Coinbase (COIN) jumping by nearly 7% in pre-market trading, and MicroStrategy (MSTR) on track to add 5%.
While inflation is down significantly from the 9.1% mark in June, it is also far above the Federal Reserve's 2% target.
Energy, gas and used car prices all declined in November, signaling that inflation has peaked.
Futures are now implying a higher chance for a lower 25-basis point hike in December following the most recent inflation data.
As reported by U.Today, the Fed announced the fourth consecutive 75-basis-point interest rate increase in early November.
Macro headwinds are viewed as one of the key reasons for Bitcoin's underperformance in 2022. Bitcoin is still down 74% from its record peak that was achieved last November.