Bitcoin, Ethereum Rise After U.S. Inflation Data Comes in Below Forecasts

Bitcoin and Ethereum moved higher on Thursday after new U.S. inflation data showed consumer prices increased less than economists had expected for last month.

Both cryptocurrencies rose before U.S. equity markets opened, with Bitcoin trading near $89,000 and Ethereum approaching $2,980. After the opening bell, prices fluctuated and failed to remain at those levels.

At the time of reporting, Bitcoin was trading around $88,399, down about 1.6% over the past seven days. Ethereum was trading near $2,957, down roughly 6.8% over the same period. Both assets were higher by a little more than 1% on the day.

Inflation data shows slower price growth

Data released by the U.S. Bureau of Labor Statistics showed consumer prices rose 2.7% year over year in November. The reading was lower than forecasts, which had projected a higher annual increase, and marked the slowest pace since July.

Core consumer prices, which exclude food and energy costs, increased 2.6% from a year earlier. That was the lowest annual core inflation rate recorded since March 2021.

The inflation report was released later than scheduled after a government shutdown disrupted the publication of earlier economic data.

Early gains fade after market open

Following the release of the inflation data, Bitcoin and Ethereum rose during early trading hours. After U.S. equity markets opened, prices moved within a narrower range and gave up part of the earlier increase.

Trading conditions in December are often thinner than during other parts of the year, with fewer participants and shorter holding periods. These conditions can result in uneven price action, particularly in assets that already trade with higher volatility.

Lower inflation reduces pressure for further interest rate increases, but digital asset prices did not continue higher during the session.

Regulatory developments remain in focus

Ethereum trading has taken place alongside ongoing discussion in Washington around digital asset regulation. Lawmakers continue to debate proposals that would define oversight and market structure for cryptocurrencies, though no timeline for passage has been set.

Recent public remarks from U.S. political leaders have indicated openness to bipartisan participation in financial regulatory agencies that oversee securities and derivatives markets. At the same time, lawmakers have said that progress on digital asset legislation depends on agreement across party lines.

Rate-cut probabilities adjust modestly

After the inflation data was released, market pricing showed a slightly higher probability that the Federal Reserve could lower its benchmark interest rate at its next meeting. Traders priced in roughly a 26% chance of a quarter-point reduction, up slightly from the previous day.

Bitcoin and Ethereum remained close to recent trading levels through the session as markets digested the inflation data and adjusted interest-rate expectations.

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