Crypto Daily – (BTC) reacted well to mixed US CPI data on Wednesday, and a surge to over $100,000 was the result. However, the surge appears to have run out of steam and another rejection is starting to take place. A higher low is the next target for bulls.
Market surges on US CPI data
Bitcoin’s reaction to the release of the December US inflation figures was certainly positive, as the king of the cryptocurrencies surged $4,000 to end the day above $100,000. The data was mixed, given that year-on-year CPI consumer inflation accelerated from 2.7% to 2.9%. However, core inflation dropped slightly from 3.3% to 3.2%. As a result, a cut in interest rates for the end of the month is unlikely.
It wasn’t just Bitcoin that was buffeted by this macro gust of wind. The S&P 500, which had looked as though it was about to drop out of an ascending channel it has been following since mid-2023, rocketed up from the bottom and put on 3% for the day.