Inflation Dips to 6.5% and BTC Price Rises

U.S. inflation is dipping to 6.5% and continuing to fall vs the previous month.

The inflation in the U.S. is dropping to 6.5% and continuing to fall vs the previous month. Experts were also predicting a 6.5% reading.

Today, January 12, the U.S. Bureau of Labor Statistics published the long-awaited December inflation figures. Inflation in the U.S. falls to 6.5% and continues to fall vs the previous month. Experts also expected a 6.5% drop. That means inflation kept falling from the previous month. Last month, inflation fell to 7.1%, a bigger drop than expected.

Market analyst Stefan Lübeck explains the inflation impact on the crypto market: "If US consumer prices keep falling, as in December, the correction in the U.S. dollar index (DXY) is likely to be bigger. That could lead to further strength in both equities and crypto. On the other hand, if consumer indices come in higher than expected, that would be a clearly bearish read for the market."

JPMorgan, the U.S. megabank, has also prepared for the CPI data. Now that inflation is confirmed at 6.5%, JPMorgan sees the S&P 500 index turning 1.5% in the black. Yet the news gave Bitcoin a positive bump. Bitcoin (BTC) rebounded to the key resistance level (USD 18,400) while awaiting the actual inflation data.