Bitcoin jumps above $89K as U.S. CPI matches expectations with a 0.2% increase in October.

U.S. inflation data for October aligned with market expectations, driving Bitcoin (BTC) closer to the $90,000 threshold.

The Consumer Price Index (CPI) increased by 0.2% in October, matching both forecasts and the previous month’s increase. On a year-over-year basis, CPI rose by 2.6%, which was in line with expectations, marking a slight uptick from the 2.4% recorded in September.

Core CPI, excluding volatile food and energy prices, saw a 0.3% rise, also in line with estimates and consistent with the previous month. Year-over-year core CPI stood at 3.3%, matching the expected figure and unchanged from September.

Bitcoin quickly responded to the data, rising to $89,500, marking a near 30% increase over the past week.

The Federal Reserve has reduced the federal funds rate by 75 basis points since September, as part of its ongoing easing cycle. Combined with a crypto-friendly agenda from President-elect Donald Trump and looser monetary policies from central banks globally, this has fueled Bitcoin’s surge to new highs.

Following the CPI data release, CME FedWatch—an indicator that tracks market expectations for Fed interest rate moves—showed that the likelihood of an additional 25 basis point rate cut in December increased from just under 60% to 69%.