CPI at 2.7% in the United States: this decline in US inflation could favor Bitcoin
Enough to encourage more Fed rate cuts? In the United States, the central bankers of the Federal Reserve System (the Fed) to investigate two main economic statistics to decide on its monetary policy, and in particular on key US central bank rates. Primarily, US employment databut also characters from inflationsuch as the consumer price index, or CPI. And exactly these just fell and are falling and much better than expected.
US inflation definitely under control: CPI fell to 2.7%
THE Bureau of Labor Statistics (BLS) from United States just published on December 18, 2025 numbers for Consumer Price IndexSteed CPIwhich therefore measures inflation consumer prices for Americans.
And it turns out that the CPI does definitely better than market participants anticipated because this economic statistic did dropped from 3% to just 2.7% (-0.3%), while expectations saw an increase to 3.1% (see chart below).
And on the side Core CPIwhich excludes categories such as food and energy subject to greater volatility, is even even better. For decay is here from 3% to 2.6% (-0.4%), i.e. the weakest inflation recorded from April 2021 and former President Joe Biden’s first months in the White House.
The Fed Has One Less Argument Why Not Continue Cutting Rates: Bitcoin Backed Up?
In addition to providing some relief from Americans’ loss of purchasing power, this news could also be Good for the sector bitcoin and cryptocurrencies. Because Jerome Powellcompany president Federal Reserve Systemwith a very optimistic goal to achieve 2% inflation, this drop in CPI from 3 to 2.7% could support a more accommodative monetary policy US central bank.
So that could mean further interest rate cuts by the Fed sooner than previously hoped. Because after the last key rate cut on December 10, Jerome Powell had a tone hawkwhich had left a lot of uncertainty regarding the continuation of these rate cuts.
But this drop in inflation that was not expected changes the situation. So observers and players in the financial markets are now more confident perhaps even on further rate cuts from January 2026. Because the next meeting FOMC (Federal Free Market Committee) on January 28 and 26.6% in the CME Group survey for its instrument FedWatch now see a cut in key Fed rates from 3.25 to 3.5% (compared to 3.5 to 3.75% currently).
On the bitcoin and crypto-asset side, we have already felt (a lot) slight tremors to announce good US CPI numbers, p BTC price who passed from the surrounding area $87,500 around $88,500 (with a brief peak of over $89,000 just after the US inflation announcement). PUSH The Fed’s rate cut has a significant impact on the cryptocurrency marketas we could see by a simple statement on the subject on November 21. And at least one of the two statistics tracked by US central bankers appears to be favorable on the continuation of these rate cuts.