The US Bureau of Labor Statistics (BLS) released the CPI data for December, showing that inflation rose at an annual rate of 2.7%. However, the core CPI was the main catch on Tuesday, as it is the Fed’s preferred gauge.
Bitcoin reacted, but only mildly, while the silver price ascended to a new peak, but some analysts still question the impact of macroeconomic data on market price.
Inflation Rose at an Annual Rate of 2.7% in December, US CPI Data Shows
The latest CPI (Consumer Price Index) report shows inflation rose at an annual rate of 2.7% in December 2025, coming in line with market expectations. However, the core CPI, which provides a cleaner view of underlying inflation trends, came in below expectations at 2.6%.
In the immediate aftermath of the report, the Bitcoin price recorded a modest surge to reclaim the $92,000 threshold. Meanwhile, spot silver price surpassed $87 per ounce for the first time, up over 21% year-to-date.
The surge was expected as core inflation signaled that underlying inflation pressures are easing. This eased fears of aggressive Fed rate hikes, lowering real yields and boosting liquidity, which tends to drive investors into risk assets like Bitcoin.
At the same time, silver benefited from the same dynamics, as softer inflation and the potential for a pause in tightening improved its appeal as a hedge, fueling a coordinated uptick in both markets.
Perhaps, this explains why before the CPI report, the CME FedWatch Tool showed interest bettors wagering a 95% chance that the Fed would keep interest rates unchanged at 3.50 to 3.75%. Post-report, the probabilities remained the same.
This report may influence the Federal Reserve’s interest rate decision, with the next meeting due on January 28, 2026.
Ahead of today’s CPI release, analysts at Greeks.live highlighted a significant decline in crypto’s implied volatility (IV) compared to a week ago.
This suggests that traders and investors largely believe that macroeconomic data no longer have a significant impact on the market.
The rebound seen at the beginning of the month, which had led to a recovery in Skew, is also said to have ended, with Skew falling back to holiday levels.
“Market sentiment remains relatively weak, with bullish momentum being quite fragile. The slightest hint of trouble causes investors to flee,” wrote analysts at Greeks.live.
This outlook aligns with remarks from JPMorgan Chase CEO Jamie Dimon, who noted that the market is not giving macro as well as geopolitical climate the importance that it deserves.
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